Intel Corporation Annual Report 1987
1987 Intel Annual Report
1987 was a strong revenue year for Intel. We returned to profitability after two tough years, and we set revenue and net income records. Revenues climbed 51% from 1986, and net income totaled $248 million, a dramatic swing from the $173 million loss recorded in 1986.
This turnaround was driven buy a new generation of desktop computers based on Intel’s advanced microprocessors. The 1985-86 period was bad for Intel’s sales, but it was very good in another respect: our customers were busy designing new systems based on the many advanced Intel products introduced during those two years. In 1987, these new systems began coming into the market, boosting demand for both microcomputer components and the microcomputer modules and systems we make for the Original Equipment Manufacturer (OEM) customers who prefer to buy at higher levels of product integration.
Intel’s employees did an outstanding job of responding to this increase in demand. They increased production swiftly while also keeping spending under control. As a result, our annual revenue-per-employee was a record $102,000, up 59% from the previous year. We achieved record total revenues in 1987 with 20% fewer employees than in 1984, a result of the restructuring activities conducted in 1985-86.
Our objectives this year were the same three we have had since 1986: to extend our architectural and technological leadership, to improve our standing as a vendor, and to be a better manufacturer. Following is a brief overview of progress made toward each objective in 1987.
Keeping our position as the architectural and technological leader in microcomputers means we have to provide a steady stream of advanced, high-quality products when the market needs them. The productivity of our design efforts is therefore critically important. Thanks to new methods and new computer-aided design technology, we’re able to create chips faster, less expensively, and with better quality—even though the complexity of those chips continues to rise rapidly.
Read the full 1987 Intel Annual Report.