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

To: Highway Jim who wrote (176527)	1/14/2004 4:26:17 PM
From: PCSS	Read Replies (1) \| Respond to of 186894

generally the intial reactions are 'knee-jerks' .... more detail & time needed down .63 AHT

To: Highway Jim who wrote (176527)	1/14/2004 4:27:42 PM
From: The Duke of URL©	Respond to of 186894

Intel Fourth-Quarter Revenue Of $8.74 Billion At Record Level Fourth-Quarter Earnings Per Share $0.33; EPS Includes $0.09 Goodwill Impairment Charge and $0.09 Tax Benefit on Divestitures SANTA CLARA, Calif., Jan. 14, 2004 - Intel Corporation today announced fourth-quarter revenue of $8.74 billion, up 12 percent sequentially and up 22 percent year-over-year. Fourth-quarter revenue was slightly higher than the previous record of $8.73 billion set in the third quarter of 2000. Fourth-quarter net income was $2.2 billion, up 31 percent sequentially and up 107 percent year-over-year. Earnings per share were $0.33, up 32 percent sequentially and up 106 percent from $0.16 in the fourth quarter of 2002. "We ended the year on a high note as ongoing strength in emerging markets coupled with improving demand in established markets drove revenue to record levels," said Craig R. Barrett, Intel chief executive officer. "Intel's substantial investments in capital and R&D over the past few years allowed us to ship record microprocessor units in 2003 and introduce exciting new products such as Intel® Centrino™ mobile technology. "In 2004, our focus will be to drive double-digit growth through technology leadership and global market expansion, and by pursuing adjacent opportunities in communications and the digital home, while using our 90-nanometer and 300-millimeter factories to reduce costs and improve profitability." The fourth quarter 2003 results included the impact of a $611-million goodwill write-down related to the Wireless Communications and Computing Group (WCCG). At the time of the fourth-quarter Business Update, the company also anticipated a tax benefit of approximately $200 million related to a divestiture. Due to an additional divestiture that closed during the quarter, the tax benefit increased by $420 million, or approximately $0.06 more than anticipated. Intel's third-quarter results included a tax benefit of $125 million related to a divestiture, and last year's fourth-quarter results included a tax benefit of approximately $75 million related to divestitures. Full-Year Results Revenue for 2003 was $30.1 billion, up 13 percent from $26.8 billion in 2002. Net income was $5.6 billion, up 81 percent from $3.1 billion in 2002. Earnings per share were $0.85, up 85 percent from $0.46 in 2002. For the year, the company paid cash dividends of $524 million, or $0.08 per share, and used $4.0 billion in cash to repurchase approximately 176 million shares of common stock. 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, acquisitions, divestitures or other business combinations that may be completed after Jan. 13, 2004. Revenue in the first quarter is expected to be between $7.9 billion and $8.5 billion. Gross margin percentage in the first quarter is expected to be approximately 60 percent, plus or minus a couple of points. Intel's gross margin percentage varies primarily with revenue levels, product mix and pricing, changes in unit costs and inventory valuation, capacity utilization, and the timing of factory ramps and associated costs. Gross margin percentage for 2004 is expected to be approximately 62 percent, plus or minus a few points, as compared to 57 percent in 2003. Expenses (R&D plus MG&A) in the first quarter are expected to be approximately $2.3 billion. Expenses, particularly certain marketing- and compensation-related expenses, vary depending on the level of revenue and profits. R&D spending is expected to be approximately $4.8 billion in 2004, as compared to $4.4 billion in 2003. The expected increase in R&D spending is primarily driven by development of the company's next-generation 65-nm process technology, scheduled for production in 2005 on 300-mm wafers. Capital spending for 2004 is expected to be between $3.6 billion and $4.0 billion, as compared to $3.7 billion in 2003. Intel's capital equipment spending is primarily targeted at 300-mm technology, which is providing the company with ongoing capital efficiency improvements. Gains from equity investments and interest and other in the first quarter are expected to be approximately $35 million. The tax rate for 2004 is expected to be approximately 32 percent. The tax rate expectation is based on current tax law and current expected income, and assumes Intel will continue to receive tax benefits for export sales. The tax rate may be affected by the closing of acquisitions or divestitures, the jurisdiction in which profits are determined to be earned and taxed, and the ability to realize deferred tax assets. Depreciation is expected to be between $1.1 billion and $1.2 billion in the first quarter and approximately $4.6 billion for the year. Amortization of acquisition-related intangibles and costs is expected to be approximately $60 million in the first quarter and approximately $170 million for the full year.