(By Balaseshan) Intel Corp. (NASDAQ: INTC) said its president and chief executive, Paul Otellini, has decided to retire as an officer and director at annual stockholders' meeting in May.
During Otellini's tenure as CEO -- from the second quarter of 2005 through the third quarter of 2012 -- Intel: generated cash from operations of $107 billion, made $23.5 billion in dividend payments and increased the quarterly dividend 181% from $0.08 to $0.225.
From the end of 2005 through the end of 2011, Intel achieved record revenue and net income. During this period, annual revenue grew from $38.8 billion to $54 billion, while annual earnings-per-share grew from $1.40 to $2.39.
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Otellini's decision to retire will bring to a close a remarkable career of nearly 40 years of continuous service to the company and its stockholders. He will start an orderly leadership transition over the next six months.
The board of directors will conduct the process to choose Otellini's successor and will consider internal and external candidates for the job.
Under Otellini's leadership, Intel achieved notable successes in areas of strategic importance. During this period, the company: reinvented the PC with Ultrabook devices; delivered the first smartphones and tablets for sale with Intel inside; grew the vast network of cloud-based computing built on Intel products; and transformed operations and the cost structure for long-term growth.
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In addition, the company also said the board has approved the promotion of three senior leaders to the position of executive vice president: Renee James, head of Intel's software business; Brian Krzanich, chief operating officer and head of worldwide manufacturing; and Stacy Smith, chief financial officer and director of corporate strategy.
Last month, Intel reported a fall in quarterly earnings and revenue as macro-economic concerns continue to mute growth and recovery in the semiconductor sector. Results, however, topped market expectations.
The world's largest chip maker earned 60 cents a share on a non-GAAP basis, down 12 percent from the year-ago quarter. Net earnings fell 14.2 percent to $2.97 billion. Revenue declined 5.5 percent to $13.5 billion for the third quarter.
In September, Intel withdrew its full-year forecast, citing softness in the enterprise PC market segment and slowing demand in emerging markets.
INTC is trading up 0.89 at $20.37 on Monday. The stock has been trading between $19.77 and $29.27 for the past 52 weeks.