Jimmy,
From Intel release:
The company expects revenue for the third quarter of 1998 to be flat
to slightly up from second quarter revenue of $5.9 billion. Consistent
with the company's earlier expectations, second half revenue is
expected to be greater than the first half revenue.
Gross margin percentage in the third quarter of 1998 is expected to
be up a couple of points from 49 percent in the second quarter.
Intel's gross margin expectation for the full year 1998 is unchanged
at 52 percent, plus or minus a few points. In the short-term, Intel's
gross margin percentage varies primarily with revenue levels and
product mix.
The company believes that over the long-term, the gross margin
percentage will be 50 percent plus or minus a few points. Intel's
long-term gross margin percentage will vary depending on product
mix.
Expenses (R& D plus MG &A) in the third quarter of 1998 are
expected to be approximately 3 to 5 percent higher than second
quarter expenses of $1.3 billion. Expenses are dependent in part on
the level of revenue.
The company has made progress in the second quarter in reducing
headcount. The timeframe to complete the reduction by
approximately 3,000 employees, primarily through attrition, has
been extended by one quarter to the end of the year. The company
reduced headcount by approximately 750 people, excluding
approximately 1,800 people added as the result of the acquisition of
Digital Equipment Corporation's semiconductor manufacturing
operations.
R & D spending is expected to be approximately $2.8 billion for
1998, including the approximately $165 million for in-process R&D
associated with the acquisition of Chips and Technologies, Inc. in
the first quarter.
The company expects interest and other income for the third quarter
of 1998 to be approximately $145 million assuming no significant
changes in interest rates or expected cash balances, and no
unanticipated items.
The tax rate for the remaining quarters of 1998 is expected to be
33.0 percent.
Capital spending for 1998 is now expected to be approximately $4.5
to $4.7 billion, flat to slightly up from $4.5 billion in 1997, but down
from the previous guidance for the year of approximately $5.0 billion.
The acceleration of 0.18 micron manufacturing process technology
in 1999 allows the company to reduce spending on current
generation technology. The current estimate includes the
acquisition of the capital assets of Digital Equipment Corporation's
semiconductor manufacturing operations.
Depreciation is expected to be approximately $2.9 billion for 1998.
Depreciation in the third quarter of 1998 is expected to be
approximately $760 million.
Steve |
