Intel :: essays research papers

IntelResults of operations. Intel broke a record in net revenues in 1995, for theninth consecutive year, rising by 41% from 1994 to 1995 and by 31% from 1993 to1994. higher(prenominal) volumes of the rapidly raising Pentium microprocessor family,partially offset by lower prices, and increased sales of related board-levelproducts were responsible for most of the growth in revenues in 1994 and 1995.Revenues from the Intel486 microprocessor family declined intimately in 1995due to a shift in market demand toward the Companys Pentium microprocessors andlower Intel486 microprocessor prices.Higher volumes of flash memory and chipset products besides contributed toward theincrease in revenues from 1993 to 1995 and also helped enable the successfulPentium microprocessor ramp. Sales of system platforms, embedded controlproducts, and networking and communications products also grew.Cost of sales increased by 40% from 1994 to 1995 and by 71% from 1993 to 1994.The growth in cost of sales from 1993 to 1995 was driven by Pentiummicroprocessor and board-level whole volume growth, new factories coming intoproduction, shifts in process and product mix, and in the quaternate quarter of 1995,by costs associated with unusually high reserves related to inventories ofcertain purchased components. Gross margin for the fourth quarter of 1994included the impact of a $475 million charge, primarily to cost of sales, tocover replacement costs, replacement material and an inventory record related toa divide problem in the floating(a) point unit of the Pentium microprocessor. As aresult of the above factors, the gross margin percentage was 52% in 1995 and1994, compared to 63% in 1993.Quarterly unit shipments of the Pentium microprocessor family passed those ofthe Intel486 microprocessor family during the third quarter of 1995. The Companyhelped accelerate this transition by offering chipsets and motherboards toenable computer manufacturers to bring their products to market faster. Sale s ofthe Pentium microprocessor family comprised a majority of the Companys revenuesand a significant majority of its gross margin during 1995. During 1995, theIntel486 microprocessor family represented a significant but rapidly decliningportion of the Companys revenues and gross margins. The Intel486 microprocessorfamily comprised a majority of the Companys revenues and a substantial majorityof its gross margin during 1993 and 1994.Research and development spending grew by 17% from 1994 to 1995, as the Companycontinued to invest in strategic programs, specially for the internaldevelopment of microprocessor products and related manufacturing technology.Increased spending for marketing programs, including media merchandising and theCompanys Intel Inside cooperative advertising program, drove the 27% increasein marketing, popular and administrative expenses from 1994 to 1995.