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1979 Intel Annual Report1979 proved to be an excellent year for our company. Revenue grew 65 percent from the previous year to $663 million and net income grew 76 percent to $78 million. Net income per share was up 66 percent to $3.59 compared to $2.16 for 1978 after adjusting for the three-for-two stock split in April 1979. In spite of the large capital needs created by this rapid growth, including $97 million of additions to facilities and equipment, we were able to decrease our short-term debt during the year by $25 million to $19 million and improve our cash position by $6 million. The corporation continues to have no long-term debt.The year was characterized by a persistent industry-wide shortage of capacity to produce microcomputer components due to demand that far exceeded most estimates made at the beginning of the year. As a result, prices for many products did not decline as rapidly with production levels as has been the historically common in the semiconductor industry.An especially significant influence for Intel this year was the expanding role of the microcomputer as a major force in spreading the use of electronics, both within and outside the usual customers for electronic components. Our major commitment to this area since we introduced the world’s first microprocessor in 1971 is proving to be rewarding. Not only has demand grown for microprocessors, but also for our associated large scale integrated peripheral circuits, memories, microcomputer development systems, and board-level products as well. We feel the real impact on society of the ability to distribute electronic intelligence in the form of inexpensive microcomputers is just beginning to be felt. This should continue to be an area of rapid expansion for many years to come. We are proud of our leading position and are striving to retain it.As we enter 1980, the markets for our products remain generally quite strong, in spite of increasing competition and a reportedly weakening economy. We are expanding facilities and personnel in an attempt to meet the volume requirements our customers are projecting. Our new silicon wafer fabrication plant in Aloha, Oregon, started production in the first quarter of 1979. It will continue to expand in 1980 and beyond. Read the full 1979 Intel Annual Report.
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