Intel Corporation Annual Report 1996
Total Page:16
File Type:pdf, Size:1020Kb
United States and Canada Intel Corporation Robert Noyce Building 2200 Mission College Boulevard P.O. Box 58119 Santa Clara, CA 95052-8119 USA Phone: (800) 628-8686 the technology Europe Intel Corporation (UK) Ltd. Pipers Way Swindon Wiltshire SN3 1RJ UK Phone: England (44) 1793 403 000 Germany (49) 89 99143 0 France (33) 1 4571 7171 Italy (39) 2 575 441 Israel (372) 2 589 7111 Netherlands (31) 10 286 6111 the brand Sweden (46) 8 705 5600 Asia-Pacific Intel Semiconductor Ltd. 32/F Two Pacific Place 88 Queensway, Central Hong Kong Phone: (852) 2844 4555 1996 Annual Report www.intel.com Japan Intel Kabushiki Kaisha P.O. Box 115 Tsukuba-gakuen 5-6 Tokodai, Tsukuba-shi Ibaraki-ken 305 Japan Phone: (81) 298 47 8522 South America the markets Intel Semicondutores do Brazil Rue Florida, 1703-2 and CJ22 CEP 04565-001 Sao Paulo-SP Brazil Phone: (55) 11 5505 2296 For More Information To learn more about Intel Corporation, visit our site on the World Wide Web at www.intel.com the results www.intel.com www.intel.com About Intel Table of contents Intel Corporation 1996 Intel Corporation 1996 t has been 25 years since Intel introduced the world’s first microprocessor, Imaking technological history. The computer revolution that this technology Letter to our 2 enabled has changed the world. Today, Intel supplies the computing industry stockholders Our two key tasks: help make the with the chips, boards, systems and software that are the “ingredients”of connected PC the most exciting and useful tool in history, and keep deliv- computer architecture. These products are used by industry members to create ering the high-performance processors advanced computing systems. Intel’s mission is to be the preeminent building that make it possible. We made enor- mous strides on both fronts in 1996. block supplier to the new computing industry worldwide. 4 Highlights Principal products of 1996 Celebrating technological history. Processor products. Microprocessors, also called central processing units Showcasing dramatic software devel- ( ) opments.Working with movie stars. CPUs or chips, are frequently described as the “brains”of a computer, It has been an exciting year. because they control the central processing of data in personal computers (PCs) and other computers. Chipsets perform essential logic functions sur- rounding the CPU in computers based on Intel architecture processors. 5.81 Motherboards combine Intel microprocessors and chipsets to form the basic subsystem of a PC or server. 4.5 Networking and communications products enhance the capabilities of 4.03 1 PC systems and networks, and make them easier to use and manage.These products are sold through reseller, retail and original equipment manufacturer 2.60 2.62 3.0 (OEM) channels. 1996 Computer enhancement products. Flash memory provides easily repro- Facts and 6 1.24 1.5 figures grammable memory for computers, mobile phones and many other products. For history at a glance, we like the Flash memory has the advantage of retaining data when the unit’s power is story told in charts. Check here for the bottom line on another fantastic year. 0 92 93 94 95 96 turned off. Embedded control chips are designed to perform specific functions in Earnings per share products such as automobile engine and braking systems, hard disk drives, laser (Dollars, adjusted for stock splits through 1996) printers, input/output control modules, cellular phones and home appliances. gy th lo e o m n a A strategy Major customers h r c k 8 e e t for growth t s e Original equipment manufacturers h of computer systems and peripherals. t Our road map for the future: drive net- PC users, who buy Intel’s PC enhancements, business communications worked PC improvements, expand our branding programs and develop new products and networking products through reseller, retail and OEM channels. t s customer bases around the world. h t e l u b s r e Other manufacturers, including makers of a wide range of industrial and a r nd e telecommunications equipment. th 18 Financial 34 Management’s 38 Corporate statements discussion directory and analysis www.intel.com www.intel.com To our stockholders To our stockholders Intel Corporation 1996 Intel Corporation 1996 e are pleased to report another sors will be sold. In response, we have $7,000 annually, according to Gartner Woutstanding year at Intel. Revenues expanded Intel’s role in the computing Group, a research and consulting firm. totaled $20.8 billion, up 29 percent from industry over the last several years. To address this serious issue, we $16.2 billion in 1995. Earnings per share Acting as a sort of R&D lab and strategic launched our Wired for Management rose 44 percent over last year, to $5.81. think tank to the industry, we work with initiative, aimed at reducing the total Our performance in 1996 was driven PC makers, software developers and PC cost of ownership of business PCs. We by strong demand for our Pentium® users to understand their future needs and other industry leaders are delivering and Pentium® Pro processors, which and wishes, and work intensely with immediate hardware and software solu- provide the brains for computers from industry leaders to develop products or tions to make it easier to install and Increase in Increase in Return on average servers to home PCs. We expanded the specifications that meet those needs. maintain PC networks without sacri- net revenues. earnings per share. stockholders’ equity. Pentium processor family in 1996 with In 1996, we focused on two key ficing performance. (1995–1996) (1995 –1996) (1996) a new 200-MHz Pentium processor initiatives that aim to solve persistent and shifted the entry-level chip to the problems in computing and embody Taking responsibility for 120- and 133-MHz Pentium processors. the exciting potential of a world of our own growth. We know we We continued to invest heavily in the can’t wait for growth to come to us.We manufacturing facilities that allow us are responsible for our own future and to deliver more powerful microproces- work to make sors while keeping it as successful PC system costs as possible by In 1996, Intel’s low. In 1996, we removing road- announced plans blocks to PC for two new man- platform growth, ufacturing sites: a developing pref- new state-of-the- erence for the art wafer fab in Intel Inside® Fort Worth, Texas, networked computers: brand among PC users and supporting 2 and an assembly and test facility in San connected CD-ROMs and down-the- emerging PC markets around the 3 market value Jose, Costa Rica. wire manageability. world. Together, these strategies build • Connected CD-ROMs: Users have value for our stockholders, which is, Driving connected PC long been frustrated by the snail-like after all, our most important goal. growth. About 70 million PCs bandwidth performance of today’s This has been an outstanding year. were sold around the world in 1996, modem-and-phone-line Internet con- We have confidence in our strategies and a substantial majority of those nections. We have worked with soft- and capabilities, and we are determined PCs contained Intel microprocessors. ware developers to create a solution— to do what we can to continue expand- This year, one trend in particular has connected CD-ROM software. ing developments in computing and driven this PC market growth: the The bandwidth-hungry, multimedia telecommunications. spread of networked computing via the environment and content of the pro- As part of our continuous evolution more than - popularity of the Internet and internal gram are delivered on a CD ROM. of Intel’s management team, in January corporate networks. In fact, 1996 was These “hybrid applications” link to the 1997 we announced a realignment of the year in which PC manufacturers Internet to provide updated content and titles and responsibilities in the Exec- and users around the world embraced real-time interaction with other users. utive Office. Effective May 21,1997, the concept that computing is, by defi- We believe that connected PC software Craig Barrett becomes president and nition, networked. is the wave of the future for home PCs. continues as chief operating officer. • Down-the-wire manageability: Andy Grove becomes chairman and R&D lab to the computing Expansion of internal business PC net- continues as chief executive officer. doubled to industry. We at Intel have long works has been hindered by the high Gordon Moore becomes chairman known that our growth depends on the costs of establishing, maintaining and emeritus and continues, with Craig continued expansion of the PC platform’s updating such networks. Indeed, net- and Andy, to be part of the Executive capabilities. The more users demand of work management costs have raised Office. Together, we look forward to the PCs, the more power will be required to the total cost of ownership of a single continuing opportunities and challenges drive them, and the more microproces- connected business PC to more than of our business in the coming year. $111 billion. Gordon E. Moore Andrew S.Grove Craig R. Barrett Chairman President and Chief Executive Officer Executive Vice President and Chief Operating Officer www.intel.com www.intel.com Highlights of 1996 Highlights of 1996 Intel Corporation 1996 Intel Corporation 1996 A revolution in progress Business PC costs come tumbling down wenty-five years ago, we introduced the o help drive down the costs of business Tworld’s first commercial microprocessor, Tcomputing, we launched our Wired for the 4004. The microprocessor’s invention rev- Management initiative in September. Leading olutionized computing and changed forever hardware and software suppliers joined us in the way people work, learn and communicate.