2008 – It's Not Just What We Make. It's What We Make Possible.
The global economic climate significantly impacted our fourth-quarter 2008 financial results. For only the second time in 20 years, our fourth-quarter revenue was below that of the third quarter. We reported revenue for the year of USD 37.6 billion, down 2% from 2007. While our operating income for 2008 was USD 9.0 billion, up 9% over 2007, our 2008 net income was USD 5.3 billion, down 24% from the prior year. We generated USD 10.9 billion in cash from operations, paid cash dividends of USD 3.1 billion, and used USD 7.2 billion to repurchase 328 million shares of common stock.
Strength in uncertain times Our industry is in the process of resetting to a new baseline from which we expect growth to resume. While the environment is uncertain, several key strengths are helping us weather the economic downturn. We ended the year with USD 11.5 billion in cash, short-term investments, and marketable debt instruments included in trading assets, enabling us to continue investing in new technologies and products for market segments that we believe offer significant growth opportunities. In 2006, we began a comprehensive restructuring effort that had resulted in cumulative savings in excess of USD 3 billion by the end of 2008. With our ongoing focus on efficiency, Intel continues to become leaner, more nimble, and better able to respond to changes in the economic environment. Perhaps our greatest strength, however, is that we design and build what the world needs. Our products and technologies are at the heart of computing and communications systems that have become essential parts of businesses, schools, and homes around the world, and are being used to tackle some of the world’s most complex problems—in areas such as education, healthcare, economic development, and environmental sustainability.
Read the full 2008 Annual Report.