Intel 2009 Annual Report Download - page 40

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Table of Contents
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (Continued)
Data Center Group
The revenue and operating income for the Data Center Group (DCG) for the three years ended December 26, 2009 were as
follows:
Net revenue for the DCG operating segment decreased slightly by $140 million, or 2%, in 2009 compared to 2008. The
increase in microprocessor revenue was due to higher microprocessor average selling prices, partially offset by lower
microprocessor unit sales. The decrease in chipset, motherboard, and other revenue was primarily due to lower chipset average
selling prices.
Operating income increased by $164 million, or 8%, in 2009 compared to 2008. The increase in operating income was
primarily due to higher microprocessor revenue and lower operating expenses, partially offset by approximately $150 million
of higher start-up costs as well as lower chipset revenue.
For 2008, net revenue for the DCG operating segment increased slightly by $135 million, or 2%, compared to 2007. The
increase in microprocessor revenue was due to higher microprocessor average selling prices. The decrease in chipset,
motherboard, and other revenue was primarily due to lower motherboard unit sales.
Operating income was flat in 2008 compared to 2007. Higher revenue was mostly offset by higher operating expenses.
Other Intel Architecture Operating Segments
The revenue and operating income for the other Intel architecture operating segments (Other IA) for the three years ended
December 26, 2009 were as follows:
Net revenue for the Other IA operating segments decreased by $361 million, or 20%, in 2009 compared to 2008, and operating
loss for the Other IA operating segments increased by $116 million in 2009 compared to 2008. The changes were primarily
due to lower revenue from the sale of communications products within the Embedded and Communications Group (ECG),
primarily as a result of business divestitures.
For 2008, net revenue for the Other IA operating segments decreased by $145 million, or 8%, compared to 2007. The decrease
was primarily due to lower revenue from the sale of communications products within ECG, primarily as a result of business
divestitures, partially offset by higher ECG microprocessor unit sales. Operating income (loss) decreased by $110 million in
2008 compared to 2007. The decrease was primarily due to higher operating expenses within the Ultra-Mobility Group and, to
a lesser extent, within the Digital Home Group.
34
(In Millions)
2009
2008
2007
Microprocessor revenue
$
5,301
$
5,126
$
4,796
Chipset, motherboard, and other revenue
1,149
1,464
1,659
Net revenue
$
6,450
$
6,590
$
6,455
Operating income
$
2,299
$
2,135
$
2,105
(In Millions)
2009
2008
2007
Net revenue
$
1,402
$
1,763
$
1,908
Operating income (loss)
$
(179
)
$
(63
)
$