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1976 Intel Annual ReportManagement ReportRevenues and earnings both reached record levels in 1976. Revenues increased 65.2% to $226.0 million, and earnings rose to $25.2 million, a 54.9% increase compared with 1975 results.A major reason for the year-to-year increase was the increased demand for Intel’s products resulting from recovery of the world economy after the deep and prolonged recession. The effects of this recovery were particularly strong during the first half, when the rate of recovery led some customers to believe that major semiconductor product shortages might occur late in the year. Accordingly, there was a flurry of buying to build inventories to protect against possible shortages. In fact, such shortages did not develop broadly. Buying the last half of the year more nearly approximated actual usage.We expect the recovery to accelerate again in the near future and are now expanding our facilities so that we can take advantage of increases in demand.Memory components remain a major portion of our business. We project that demand for memory of all kinds will continue to grow at a rate significantly faster than that for the overall electronics industry. Intel has a strong position in major segments of the semiconductor memory market, and we feel that we are well situated to compete for a large share as the market grows. We have recently disclosed our plans to introduce several new products which offer improved performance and lower cost in many applications. Recognizing the importance of the area to Intel’s future, a new Microcomputer Division was formed. Dr. William H. Davidow, who has been in charge of much of the microcomputer work at Intel, was made division general manager and elected a vice president of the corporation. Interest in these products remains high and our microcomputer business has continued to develop during the year. Read the full 1976 Intel Annual Report.
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