>> Are you predicting that Intel inventories have declined this quarter?
Yes, I think so.
Intel's inventory is up as is their customer's.
Inventories:
Raw materials 416 409
Work in process 1,937 1,662
Finished goods 1,199 1,055
------------- ------------
3,552 3,126
Q2 2006 Outlook
Revenue: Expected to be between $8.0 billion and $8.6 billion, below normal seasonal patterns. The company believes PC growth rates have moderated in recent quarters, resulting in above-normal customer inventory levels that are limiting demand in the short term.
Gross margin: 49 percent, plus or minus a couple of points (50 percent, plus or minus a couple of points, excluding share-based compensation effects of approximately 1 percent). The expected reduction in the gross margin percentage from first-quarter levels is primarily due to a higher proportion of lower-margin product in the overall mix along with higher microprocessor unit costs and lower microprocessor ASPs.
Expenses (R&D plus MG&A): Between $3 billion and $3.1 billion (between $2.7 billion and $2.8 billion excluding share-based compensation effects of approximately $300 million).
Gains from equity investments and interest and other: Approximately $175 million.
Tax rate: Approximately 30.5 percent.
Depreciation: Between $1.1 billion and $1.2 billion.
Amortization of acquisition-related intangibles and costs: Approximately $10 million.
In accordance with internal cash management policies, the company expects to significantly reduce the rate of share repurchases in upcoming quarters relative to the first-quarter rate.
Revised 2006 Outlook
The previous Business Outlook for 2006 can be found in the company's fourth-quarter 2005 earnings release, available at www.intc.com.
2006 Revenue: Expected to be approximately 3 percent lower than prior-year revenue of $38.8 billion, subject to a wide range of potential variability.
Gross margin: 53 percent, plus or minus a few points (54 percent, plus or minus a few points, excluding share-based compensation effects of approximately 1 percent).
R&D: Approximately $6.1 billion (approximately $5.6 billion excluding share-based compensation effects of approximately $500 million).
MG&A: Approximately $6 billion (approximately $5.4 billion excluding share-based compensation effects of approximately $600 million).
Capital spending: $6.6 billion plus or minus $200 million.
Tax rate: Approximately 30.5 percent for the third and fourth quarters.
Depreciation: $4.7 billion plus or minus $100 million, unchanged.
Amortization of acquisition-related intangibles and costs: Approximately $45 million. |
