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1975 Intel Annual ReportAlthough 1975 revenues of $136.8 million were a new high, up 1.7% from 1974, earnings of $16.3 million, or $2.35 per share, were down by 17.7% from the record levels of 1974. The last two quarters do, however, compare favorably with the corresponding quarters in 1974 both in revenues and earnings.The recession, which hit most of the semiconductor industry about mid-1974, has proven to be deeper and more persistent than previous dips, such as the one in 1970-71. As yet, we see no clear signs of any renewed strength in the electronic components portions of business. While the suddenness and depth of the decline were certainly exaggerated by recognition on the part of the users that they had excess inventory for their projected business levels, this excess has, for the most part, been worked off. We feel that there is now relatively little inventory of Intel’s products in our customers’ hands and that our shipments approximate quite closely their usage. Any increase in usage levels which would also require increased inventory should cause rapid acceleration of orders. This has not yet occurred.The relative softness in the components business was compensated somewhat by growth in the Memory Systems Division and in Microma, our electronic watch subsidiary. In particular, the market for add-on memory systems for IBM computers has been strong, and we expect it to continue to be strong in 1976. This is, in part, a result of a sales force added to serve this market directly as well as through mid-party leasing companies.Microma has placed its major emphasis during the year on building up volume production of its own brand of electronic watches and marketing them through quality department stores and similar retail outlets. The de-emphasis of module sales reflected our view that, in order to participate in this large new market for electronics, it is necessary to make the complete watch. Progress has been gratifying. Microma gas established itself as one of the leading producers of electronic watches.Read the full 1975 Intel Annual Report.
Biography and historical still collection of Robert Noyce, inventor of the first practical microchip.
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