Intel CEO Paul Otellini is a powerhouse in the processor industry. A 40 year veteran of the microprocessor world Otellini helped transform Intel from a company suffering through an inefficient Pentium 4 processor to a company dominating the space thanks to the X86 architecture.
Otellini was also seen as a major player in Apple’s decision to ditch its PowerPC setup and move towards Intel based iMac’s, Mac Mini’s and Macbook’s.
Here are some of the massive sales numbers that were achieved under Otellini’s time as CEO from second quarter of 2005 through the third quarter of 2012:
> Generated cash from operations of $107 billion
> Made $23.5 billion in dividend payments
> Increased the quarterly dividend 181 percent 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.
Intel’s board of directors plan to spend the next sixth months transitioning to a new CEO who has yet to be chosen.
Otellini has chosen to leave Intel just as the company begins to face increased competition from the ARM architecture which is used to power the increasing number of smartphone and tablet devices on the market. Intel is just now beginning to penetrate the massive mobile market thanks to its x86 Medfield ultra low-power chipset.
Because of the smartphone and tablet market Intel is facing tough competition from Samsung, Qualcomm and other competitors who never posed a serious threat to its PC and desktop dominance.
In his resignation letter Otellini writes:
“I’ve been privileged to lead one of the world’s greatest companies. After almost four decades with the company and eight years as CEO, it’s time to move on and transfer Intel’s helm to a new generation of leadership. I look forward to working with Andy, the board and the management team during the six-month transition period, and to being available as an advisor to management after retiring as CEO.”