INTC ignites the comp this morning!
Long live the bubble~
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(BSNS WIRE) Intel Third-Quarter Business Trending above Expectations
Intel Third-Quarter Business Trending above Expectations
Business Editors
SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 22, 2003--
Company Updates Revenue Range to $7.3 Billion to $7.8 Billion;
Conference Call Scheduled for Today at 7 a.m. PDT
Call-in Number is 913-981-5508; Code 772506
Intel Corporation today provided an update to the company's
Business Outlook for the third quarter, which ends Sept. 27.
Intel expects revenue to be between $7.3 billion and $7.8 billion,
as compared to the previous range of $6.9 billion to $7.5 billion. The
company's Intel Architecture business is generally trending higher
across all geographies and channels while demand for communications
products remains soft. Gross margin is expected to be 56 percent, plus
or minus a couple of points, compared to previous expectation of 54
percent, plus or minus a couple of points. All other expectations are
unchanged.
The company will hold a conference call at 7 a.m. PDT to discuss
today's announcement. The call-in number is 913-981-5508, code 772506.
The replay number is 719-457-0820, code 772506, and will be available
until Aug. 29. In addition, the conference call will be available live
at www.intc.com. Intel's third-quarter Business Outlook was originally
published in the company's second-quarter 2003 earnings release,
available at www.intc.com.
As announced on July 15, Intel will issue a third-quarter 2003
mid-quarter Business Update press release on Sept. 4. However, the
company currently does not plan to hold a conference call on that
date.
Intel, the world's largest chip maker, is also a leading
manufacturer of computer, networking and communications products.
Additional information about Intel is available at
www.intel.com/pressroom.
Today's business update and the July 15 Business Outlook are
forward looking and involve a number of risks and uncertainties.
Demand for Intel's products, which impacts revenue and gross margin,
is affected by business and economic conditions as well as computing
and communications industry trends and changes in customer ordering
patterns. Revenue and the gross margin percentage are affected by
competing chip architectures and manufacturing technologies, competing
software-compatible microprocessors, pricing pressures and other
competitive factors, as well as market acceptance of Intel's new
products, the availability of sufficient inventory to meet demand, and
the development and timing of introduction of compelling software
applications and operating systems that take advantage of the features
of our products. Future revenue is also dependent on continuing
technological advancement, including developing and implementing new
processes and strategic products, as well as the timing of new product
introductions, sustaining and growing new businesses, and integrating
and operating any acquired businesses. In addition to the impact of
changes in revenue, the gross margin percentage varies with product
mix and pricing, changes in unit costs, capacity utilization and the
existence of insufficient or excess capacity, and the timing and
execution of the manufacturing ramp and associated costs. The gross
margin percentage could also be affected by excess or obsolete
inventory and variations in inventory valuation. Intel conducts much
of its manufacturing, assembly and test, and sales outside the United
States and is thus subject to a number of other factors, including
currency controls and fluctuations, and tariff and import regulations.
If terrorist activity, armed conflict, civil or military unrest or
political instability occurs in the United States, Israel or other
locations, such events may disrupt manufacturing, assembly and test,
logistics, security and communications, and could also result in
reduced demand for Intel's products. The impact of major health
concerns, such as the SARS illness, could also adversely affect our
business and our customer order patterns. Expenses, particularly
certain marketing and compensation expenses, vary depending on the
level of revenue and profits. The expectation regarding gains or
losses from equity securities and interest and other assumes no
unanticipated events and varies depending on equity market levels and
volatility, gains or losses realized on the sale or exchange of
securities, impairment charges related to non-marketable and other
investments, interest rates, cash balances, and changes in fair value
of derivative instruments. Expectations of impairment charges are
based on experience, and it is not possible to know which specific
investments are likely to be impaired or the extent or timing of
individual impairments. The expectation for our tax rate is based on
current tax law and the current expected income, may be affected by
the closing of acquisitions or divestitures, the jurisdiction in which
profits are determined to be earned and taxed, the ability to realize
deferred tax assets, and assumes the company continues to receive the
tax benefit for export sales. Results could also be affected by
adverse effects associated with product defects and errata (deviations
from published specifications) and by litigation, such as that
described in Intel's SEC reports, as well as other risk factors listed
in Intel's SEC reports, including the report on Form 10-Q for the
quarter ended June 28, 2003.
Intel is a registered trademark of Intel Corporation or its
subsidiaries in the United States and other countries.
--30--EL/sf*
CONTACT: Intel Corporation
Doug Lusk, 408-765-1679 (Investor Relations)
Tom Beermann 408-765-6855 (Press Relations)
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: TELECOMMUNICATIONS SOFTWARE HARDWARE
COMPUTERS/ELECTRONICS CONFERENCE CALLS
SOURCE: Intel Corporation
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