1999 – The Building Blocks of the Internet Economy
In 1999, the Internet revolution continued to reshape how the world does business. Accordingly, we worked to transform Intel: from being at the center of the PC industry to being at the center of the Internet economy. We developed new strategic business directions that position us to supply key building blocks at many points within the Internet infrastructure, from networks to chips. Even as we were expanding the company’s focus, our core microprocessor business provided us with a solid growth rate. We ended the year with record sales of $29.4 billion, an increase of 12%.
This was our 13th straight year of revenue growth. Net income was up 21% to $7.3 billion including acquisition-related costs; without acquisition-related costs, it would have been up 29% to $8.1 billion. Our performance was strong around the world, with 57% of our sales coming from outside the U.S. The Asian markets have started to recover, and European sales were solid. As the developing economies expand, we expect even stronger growth worldwide.
1999 was an extraordinarily busy year, with significant output from all of our product groups. To our frustration, our execution was less than perfect, leading to delays in the introduction of several products. Despite these issues, we ended the year with a very strong roster of achievements:
• Processor launch: We accomplished the largest microprocessor product introduction in our history, with 15 new Pentium® III and Pentium® III Xeon™ processors introduced at once. This was supported by chipsets and motherboards that help computer makers bring systems based on the new chips to market quickly.
• Manufacturing: We ramped our new 0.18-micron manufacturing process faster than any other process in our history. We were able to generate high yields quickly in our factories.
Read the full 1999 Annual Report.