Over 80% of revenues at Intel Corp still come from microprocessors, the company’s annual report revealed at the end of last week. Microprocessor revenues from Intel’s Architecture Business Group amounted to $21.5bn in 1998, out of total revenues of $26.3bn. The rest of Intel’s revenues come from graphics and memory chips, video conferencing and networking.
New accounting rules now require businesses to break down their revenues into segments. But revenues for two of Intel’s four divisions, Network Communications and New Business, were included in a single all other category in the report. That segment has lost around $1bn annually over the last three years. Intel has been investing heavily in networking.
Earlier this month Intel acquired Level One Communications Inc for $2.2bn in stock, and last year acquired remote access and virtual private network vendor Shiva Inc for $182m. In 1997, Intel acquired Case Technology A/S, Dayna Communications Inc, and networking technologies from Microdyne Corp. In two weeks, the company officially enters the Home Networking market with its first products.
Also in the report, Intel revealed that it had one customers – assumed to be Compaq Computer Corp – which accounted for 13% of its sales, and another accounting for 11% of sales. Like IBM Corp last week, Intel also revealed its spending on Year 2000 fixes. It said it had cut its estimated expenses to $175m from $250m. So far, it has spent around $42m on the problem.
