Intel hasn't revised it's 3rd quarter guidance, FWIW:
BUSINESS OUTLOOK
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of any mergers or acquisitions that may be completed after July 1, 2000.
** The company expects revenue for the third quarter of 2000 to be up from second quarter revenue of $8.3 billion.
** The company expects gross margin percentage for the third quarter to be approximately 63 to 64 percent. Based on first half results and current expectations, gross margin percentage for 2000 is now expected to be 63 percent, plus or minus a few points, including the impact of all costs associated with the MTH motherboard replacement program. In the short term, Intel's gross margin percentage varies primarily with revenue levels and product mix as well as changes in unit costs.
** Expenses (R&D, excluding in-process R&D, plus MG&A) in the third quarter of 2000 are expected to be up 7 to 9 percent from second quarter expenses of $2.2 billion, primarily due to higher spending on marketing programs and R&D initiatives in new business areas. Expenses are dependent in part on the level of revenue.
** R&D spending, excluding in-process R&D, is expected to be approximately $4.0 billion for 2000, up from previous guidance of $3.9 billion.
** The company expects interest and other income for the third quarter of 2000 to be approximately $800 million, depending on interest rates, cash balances, equity market levels and volatility, the realization of expected gains on investments, including gains on investments acquired by third parties, and assuming no unanticipated items.
** The tax rate for 2000 is expected to be approximately 31.8 percent, excluding the impact of the previously announced agreement with the Internal Revenue Service and acquisition-related costs, up slightly from previous guidance of 31.7 percent, due primarily to higher than expected realized gains on the sale of equity investments.
** Capital spending for 2000 is expected to be approximately $6.0 billion.
** Depreciation is expected to be approximately $790 million in the third quarter and $3.4 billion for the full year 2000, down from previous guidance of $3.5 billion.
** Amortization of goodwill and other acquisition-related intangibles is expected to be approximately $400 million in the third quarter and $1.5 billion for the full year 2000, up from previous guidance of $1.4 billion. |
