Intel just reported a quarterly net income of $2 billion, with $12.6 billion in revenue for a total earnings of 40 cents per share. Net income is down 17 percent compared to Q4 2012, when the company reported $2.5 billion in profit. Revenue is also down by seven percent compared to the previous quarter's $13.5 billion. President and CEO Paul Otellini, who is stepping down in May, references the upcoming 14nm transition, saying that the technology will "will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace." The earnings call is set to happen soon; we'll report back with any additional news -- on the CEO front or otherwise.

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SANTA CLARA, Calif., Apr. 16, 2013 – Intel Corporation today reported first-quarter revenue of $12.6 billion, operating income of $2.5 billion, net income of $2.0 billion and EPS of $0.40. The company generated approximately $4.3 billion in cash from operations, paid dividends of $1.1 billion, and used $533 million to repurchase 25 million shares of stock.

"Amidst market softness, Intel performed well in the first quarter and I'm excited about what lies ahead for the company," said Paul Otellini, Intel president and CEO. "We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors this quarter. We are working with our customers to introduce innovative new products across multiple operating systems. The transition to 14nm technology this year will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace."

Q1 Key Financial Information and Business Unit Trends

PC Client Group revenue of $8.0 billion, down 6.6 percent sequentially and down 6.0 percent year-over-year.
Data Center Group revenue of $2.6 billion, down 6.9 percent sequentially and up 7.5 percent year-over-year.
Other Intel® Architecture Group revenue of $1.0 billion, down 3.9 percent sequentially and down 9.0 percent year-over-year.
Gross margin of 56 percent, down 2 percentage points sequentially and down 8 percentage points year-over-year.
R&D plus MG&A spending of $4.5 billion, in line with the company's expectation of approximately $4.6 billion.
Tax rate of 16 percent.

Business Outlook
Intel's Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures or other investments that may be completed after April 16.

Q2 2013
Revenue: $12.9 billion, plus or minus $500 million.
Gross margin percentage: 58 percent, plus or minus a couple percentage points.
R&D plus MG&A spending: approximately $4.7 billion.
Amortization of acquisition-related intangibles: approximately $70 million.
Impact of equity investments and interest and other: approximately zero.
Depreciation: approximately $1.7 billion.

Full-Year 2013
Revenue: low single-digit percentage increase, unchanged from prior expectations.
Gross margin percentage: 60 percent, plus or minus a few percentage points, unchanged from prior expectations.
R&D plus MG&A spending: $18.9 billion, plus or minus $200 million, unchanged from prior expectations.
Amortization of acquisition-related intangibles: approximately $300 million, unchanged from prior expectations.
Depreciation: $6.8 billion, plus or minus $100 million, unchanged from prior expectations.
Tax Rate: approximately 27 percent for each of the remaining quarters of the year.
Full-year capital spending: $12.0 billion, plus or minus $500 million, down $1.0 billion from prior expectations.

For additional information regarding Intel's results and Business Outlook, please see the CFO commentary at: www.intc.com/results.cfm.

Status of Business Outlook
Intel's Business Outlook is posted on intc.com and may be reiterated in public or private meetings with investors and others. The Business Outlook will be effective through the close of business June 14 unless earlier updated; except that the Business Outlook for amortization of acquisition-related intangibles, impact of equity investments and interest and other, and tax rate, will be effective only through the close of business on April 23. Intel's Quiet Period will start from the close of business on June 14 until publication of the company's second-quarter earnings release, scheduled for July 17, 2013. During the Quiet Period, all of the Business Outlook and other forward-looking statements disclosed in the company's news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.

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Intel reports Q1 earnings: $12.6 billion revenue, $2 billion net income