This summary is based on the fourth quarter fiscal 2007 earnings call conducted by Intel Corporation (INTC: chart) on January 15, 2008.

Management:

President, Chief Executive Officer, Director: Paul S. Otellini
Chief Financial Officer, Principal Accounting Officer: Stacy J. Smith
Vice President, Investor Relations: Kevin Sellers

Key Investors Issues

- EPS were 38 cents per share compared to 26 cents per share a year ago.
- Net income was $2.27 billion compared to $1.5 billion for the year-ago period.
- Revenue grew more than 10% to $10.7 billion

Fourth Quarter Highlights

Revenue was $10.7 billion, a 6% increase over the third quarter and below seasonal growth patterns following a strong third quarter.

Computing related products and NOR Flash met expectations, while NAND Flash fell short.

- The quarterly revenue growth came from nearly all product lines - microprocessors with a combination of record units, record revenue, and flat average selling prices, were a significant contributor. The company saw double-digit unit growth in server and mobile microprocessors. Flash revenues grew in both NOR and NAND product lines.

- Revenue was up 10.5% year over year. Growth was driven by all geographies with particular strength in Europe.

Gross margin at 58% was up nearly seven percentage points from the third quarter.

Gross profit dollars were $6.2 billion, up 27% from the third quarter and up 29% from the same quarter a year ago.

The increase quarter to quarter was driven by approximately three points from lower unit costs and one point each from higher CPU volume from 45-nanometer product qualifying for sale in the fourth quarter and being classified as inventory, from lower start-up costs and from the Transmeta settlement charge taken in the third quarter.

Gross margin was one point higher than the midpoint of forecast based on lower-than-expected start-up costs and an overall Intel product mix richer than expected.

In a year-to-year comparison, gross margin percentage is eight-and-a-half points higher than the gross margin in 2006. The vast majority of this increase is due to decreasing cost in CPU business.

The company continued to reduce spending as a percentage of revenue.

R&D and MG&A were $2.9 billion, higher than in the third quarter and within the forecast range provided in October.

Restructuring costs were approximately $230 million, $100 million higher than expectation, primarily due to an impairment related to assets, which the company plans to sell in conjunction with the divestiture of NOR Flash memory business.

The impairment is based on the revised value the company expects to receive when the deal closes.

Inventory declined by approximately $170 million to $3.4 billion.