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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Maverick who wrote (113839)	10/16/2000 11:10:07 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

There are a quite a few inconsistencies between SSB's report and Intel's revised guidance, issued with 8 days left in the quarter. I guess we'll find out who is right tomorrow evening. Intel Third Quarter Revenue To Be Below Expectations Demand in Europe weaker than expected SANTA CLARA, Calif., Sept. 21, 2000 -- Intel's third quarter revenue is anticipated to be below the company's previous expectations, primarily due to weaker demand in Europe, the company said today. The company now expects revenue for the third quarter to be approximately 3 to 5 percent higher than second quarter revenue of $8.3 billion. The company expects gross margin percentage for the third quarter to be 62 percent, plus or minus a point, lower than the company's previous expectations of approximately 63 to 64 percent. Interest and other is expected to be approximately $900 million for the third quarter, up from the company's previous expectations of $800 million. 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 reflect the potential impact of any mergers or acquisitions that may be completed after the date of this release. The company expects revenue for the third quarter of 2000 to be approximately 3 to 5 percent higher than second quarter revenue of $8.3 billion. The company expects gross margin percentage for the third quarter to be 62 percent, plus or minus a point. Gross margin percentage for 2000 is expected to be 63 percent, plus or minus a few points. 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. The company expects interest and other income for the third quarter of 2000 to be approximately $900 million. Interest and other is dependent in part 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. 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. ** 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. Copies of this earnings release and Intel's annual report can be obtained via the Internet at www.intc.com or by calling Intel's transfer agent, Computershare Investor Services, L.L.C. (formerly named Harris Trust and Savings Bank), at (800) 298-0146. 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.