Intel 2013 Annual Report Download - page 2

I am very excited to be Intel’s sixth CEO. In my rst letter to you, I would like to share how we are building on
Intel’s strengths to accelerate innovation and drive growth. But rst, let’s look at the results for scal year 2013.
Intel delivered revenue of $52.7 billion, net income of $9.6 billion, and earnings per share of $1.89. Client
computing products generated $33 billion in revenue and approximately $12 billion in operating prots. Our
datacenter business revenue grew to more than $11 billion, driven by rising demand for cloud services, high-
performance computing, storage, and networking. We generated almost $21 billion in cash from operations
and returned $6.6 billion to our stockholders in the form of dividends and share repurchases.
These are solid results in a time of rapid industry transformation, but we must do better. We are refocusing our eorts to reignite
growth by driving Intel innovation to market faster.
Leading in the pursuit of Moore’s Law
The relentless pursuit of Moore’s Law is Intel’s foundation and continues to be our driving force. We lead the industry as the only
semiconductor manufacturer in the world oering Tri-gate transistors and 22-nanometer (nm) technology-based products. The benets
of Moore’s Law can be seen across our product lines in the form of higher performance, lower energy requirements, and lower cost per
transistor. In 2013, we introduced our 4th generation Intel® Core™ processors, which deliver the largest generation-over-generation
gain in battery life in Intel’s history, and a new family of low-power Intel® Atom™ processor-based System-on-Chips (SoCs) designed
for high-performance mobile devices. We will continue this manufacturing leadership as we begin production of our 5th generation
Intel Core processors (code-named “Broadwell”) on our next-generation 14nm process technology this year.
Accelerating mobility
The world of mobile client computing is expanding to include not only notebook computers and tablets, but also 2 in 1 devices that
combine the best features of notebooks and tablets. We are taking aggressive steps to move swiftly in all of these market segments
and to grow with them. Last year, we established a footprint in the tablet market with the shipment of more than 10 million micro-
processors, and for 2014 we have set an aggressive goal to increase that number to 40 million. We also made signicant advances
in our 3G and 4G (LTE) communications capabilities in 2013. This year we are driving faster integration of these communications
technologies into our SoCs.
Reinvigorating innovation
We are reinvigorating innovation at Intel and bringing it to market faster. For example, in September 2013 we introduced Intel® Quark™
technology. This technology is designed for applications in fast-growing markets such as wearables and the “Internet of Things,”
where the priorities are extremely small size and very low power consumption. We also announced innovative products such as
the Intel® Galileo development board, the rst Intel architecture-based Arduino*-compatible board to support the maker and
education communities; and the Intel® Edison development platform, a general-purpose computer housed in a tiny form factor designed
to enable rapid innovation by inventors, entrepreneurs, and product designers. Neither of these products was on our roadmaps
before mid-2013. You will continue to see a faster pace of innovation moving forward.
Our commitment to corporate responsibility
Corporate responsibility is an enduring Intel value that delivers returns for our company, stockholders, and society. In 2013, we
continued to expand education opportunities for millions of students around the world, we were again the largest voluntary purchaser
of green power in the U.S., and our employees donated more than 1 million volunteer hours to their communities. I am especially
proud of our leadership in the area of “conict minerals.” We have worked for ve years to ensure that our products do not contain
tantalum, tin, tungsten, or gold that nances or benets armed groups in the Democratic Republic of the Congo (DRC) and adjoining
countries. In 2013, we accomplished our goal to manufacture microprocessors that are DRC conict-free.
Prepared for the opportunities ahead
I believe we have great opportunities ahead of us. Intel has leading products and technologies for growing markets, a strong work-
force, and a heritage of leadership in driving Moore’s Law. We have sharpened our product focus and are accelerating the pace of
our innovation. I look forward to growing stockholder return by delivering industry-leading products for a dynamic and changing
marketplace and ensuring that “If it computes, it does it best with Intel.”
Letter From Your CEO
Brian M. Krzanich, Chief Executive Ocer
Past performance does not guarantee future results. This Annual Report to Stockholders contains forward-looking statements, and actual results could dier materially. Risk factors
that could cause actual results to dier are set forth in the “Risk Factors” section and throughout our 2013 Form 10-K, which is included in this Annual Report. These risk factors are
subject to update by our future SEC lings and earnings releases.