fuchi:
Read the following press release In case of you got bad memory. By the way,
do you stll hold your 20+k gain ?
SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 6, 1996--Intel Corporation is pleased that the voters of California have rejected
Proposition 211: "Attorney-Client Fee Arrangements, Securities Fraud, Initiative Statute."
In a press release dated October 7, 1996, Intel announced elimination of forward-looking statements due to concern that had Proposition 211
been enacted, it would have increased the risk of frivolous stockholder law suits. With rejection of Proposition 211 by the voters of California, the
company is resuming customary communications with stockholders and the investment community. This press release outlines the company's
expectations for the fourth quarter.
BUSINESS OUTLOOK
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
-- Based upon continued current strength in bookings and billings, Intel expects the fourth quarter of 1996 to show continued strong revenue
growth resulting in fourth quarter revenue being significantly higher than third quarter revenue of $5.14 billion. Fourth quarter results are dependent
upon strong seasonal sales of PCs and on continued billings strength through the remainder of the quarter.
-- Assuming continued strength in billings, the company expects gross margin percentage in the fourth quarter to be above the third quarter's level
of 57 percent. Gross margin percentage is affected by various factors including product mix, fluctuations in motherboard versus processor
shipments, efficiencies in manufacturing, processor speed mix and shipments of other semiconductors.
-- Expenses (R&D plus MG&A) are expected to be up about 17 to 20 percent in the fourth quarter of 1996 from $1.01 billion in the third quarter
of 1996, due primarily to seasonally higher advertising costs and revenue dependent expenses such as co-marketing programs. Expense
projections in the fourth quarter of 1996 are subject to changes in revenue dependent expenses.
-- The company continues to expect the tax rate to be 35.0 percent in 1996.
-- The company expects interest and other income to be in the $95 to $100 million range for the fourth quarter of 1996, assuming no significant
change in prevailing interest rates, cash balances, and no unusual items of other income.
-- The company currently expects capital expenditures for 1996 to not exceed $3.4 billion, lower than the previous estimate of about $3.6 billion
due to delays in initiating construction of administrative facilities. Depreciation is expected to be about $1.9 billion in 1996.
Intel plans to report fourth quarter 1996 earnings on Tuesday, January 14, 1997 after the close of the market. The report will be available on the
Internet at intel.com. |
