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2003 – Growth Through Technology Leadership

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2003 – Growth Through Technology Leadership

In 2003, we turned a key corner in our pursuit of growth. Over the last few years, we have worked to lay the ground-work for the future: investing in leading-edge technology and developing innovative products that make us more competitive, while controlling non-essential spending. This year’s results show that our efforts are beginning to pay off.

We ended 2003 with substantial improvements in revenue and profit over 2002. Revenue of $30.1 billion was up 13% over 2002, with net income of $5.6 billion, up 81% over 2002. We spent $3.7 billion on capital assets, mostly factories and equipment, and had $4.4 billion in research and development expenses. Despite challenges in our Wireless Communications and Computing Group resulting in a $611 million goodwill write-off, 2003 operating income of $7.5 billion was up 72% from 2002.

Product innovation.

In 2003, the Intel® Pentium® 4 processor was our highest sales-volume desktop processor. During the year, we introduced several new desktop Pentium 4 processors incorporating our Hyper-Threading Technology, an architectural innovation that can increase system-level performance by allowing a single processor to handle two streams of data instructions simultaneously (in systems designed to take advantage of the technology). Our server business continues to grow, with record revenue from sales of Intel® Xeon® processors, and shipments of more than 100,000 units of Intel® Itanium® processors, in 2003. In high-performance computing the number of Intel processor–based systems in the TOP500* list of the world’s fastest supercomputers grew by nearly 50% over a six-month period, with supercomputers based on Intel processors outnumbering those based on any single RISC architecture for the first time.

Read the full 2003 Intel Annual Report.