Intel :: essays research papers

IntelResults of operations. Intel broke a record in terminal revenues in 1995, for theninth consecutive year, rising by 41% from 1994 to 1995 and by 31% from 1993 to1994. Higher volumes of the rapidly raising Pentium microprocessor family,partially offset by lower prices, and increased consummate(a) sales of related board-levelproducts were responsible for most of the crop in revenues in 1994 and 1995.Revenues from the Intel486 microprocessor family declined substantially in 1995due to a rupture in market demand toward the companions Pentium microprocessors andlower Intel486 microprocessor prices.Higher volumes of flash warehousing and chipset products also contributed toward theincrease in revenues from 1993 to 1995 and also helped enable the successfulPentium microprocessor ramp. sales of system platforms, embedded controlproducts, and networking and communications products also grew.Cost of sales increased by 40% from 1994 to 1995 and by 71% from 1993 to 1994.The growth i n cost of sales from 1993 to 1995 was driven by Pentiummicroprocessor and board-level unit volume growth, tender factories coming intoproduction, shifts in process and product mix, and in the fourth string of 1995,by costs associated with unusually high reserves related to inventories of legitimate purchased components. Gross marge for the fourth quarter of 1994included the impact of a $475 million charge, primarily to cost of sales, tocover replacement costs, replacement natural and an inventory record related toa divide problem in the floating point unit of the Pentium microprocessor. As aresult of the in a higher place factors, the gross molding percentage was 52% in 1995 and1994, compared to 63% in 1993.Quarterly unit shipments of the Pentium microprocessor family passed those ofthe Intel486 microprocessor family during the third quarter of 1995. The Companyhelped accelerate this innovation by offering chipsets and motherboards toenable computer manufacturers to bring the ir products to market faster. gross sales ofthe Pentium microprocessor family comprised a majority of the Companys revenuesand a substantial majority of its gross margin during 1995. During 1995, theIntel486 microprocessor family represented a significant but rapidly decliningportion of the Companys revenues and gross margins. The Intel486 microprocessorfamily comprised a majority of the Companys revenues and a substantial majorityof its gross margin during 1993 and 1994.Research and maturement spending grew by 17% from 1994 to 1995, as the Companycontinued to invest in strategic programs, particularly for the internaldevelopment of microprocessor products and related manufacturing technology.Increased spending for marketing programs, including media merchandising and theCompanys Intel Inside reconciling advertising program, drove the 27% increasein marketing, general and administrative expenses from 1994 to 1995.