Intel Corporation on Thursday reported fourth-quarter and full-year 2020 financial results, with the board of directors approving a cash dividend increase of five percent to $1.39 per share on an annual basis.
A press release on the results issued by the company further stated that the board declared a quarterly dividend of $0.3475 per share on the company’s common stock, which will be payable on March 1 to shareholders of record on February 7.
Commenting on the company’s performance in the year under review, the CEO, Bob Swan said: “We significantly exceeded our expectations for the quarter, capping off our fifth consecutive record year.
“Demand for the computing performance Intel delivers remains very strong and our focus on growth opportunities is paying off. It has been an honor to lead this wonderful company, and I am proud of what we have achieved as a team. Intel is in a strong strategic and financial position as we make this leadership transition and take Intel to the next level”, Swan added.
The statement indicated that the Fourth-quarter revenue exceeded prior expectations by $2.6 billion driven by record PC-centric revenue with PC unit volumes up 33 percent year-on-year (YoY), led by record notebook sales.
It also indicated that the company also achieved better-than-expected data-centric results, including record Mobileye revenue.
“2020 marked Intel’s fifth consecutive year of record revenue. The Client Computing Group, Data Center Group, Non-volatile Memory Solutions Group, and Mobileye all achieved record full-year revenue. In 2020, the company invested $13.6 billion in research and development and $14.3 billion in capital expenditures while focusing to strengthen its core CPU business, improve execution and accelerate growth”, the statement added.
It further stated that the COVID-19 pandemic, which resulted in authorities imposing numerous measures to try to contain the virus, adversely affected significant portions of Intel’s business and could have a material adverse effect on Intel’s financial condition and results of operations.
The company expatiated: “These measures have impacted and may further impact our workforce and operations, the operations of our customers, and those of our respective vendors, suppliers, and partners.
“Restrictions on our manufacturing or support operations or workforce, or similar limitations for our vendors and suppliers, can impact our ability to meet customer demand and could have a material adverse effect on us. Current and future restrictions or disruptions of transportation, or disruptions in our customers’ operations and supply chains, may adversely affect our results of operations.
“The pandemic has caused us to modify our business practices. There is no certainty that such measures will be sufficient to mitigate the risks posed by the virus, and illness and workforce disruptions could lead to unavailability of our key personnel and harm our ability to perform critical functions. The pandemic has significantly increased economic and demand uncertainty”, the techno-giant added.