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To: TGPTNDR who wrote (135949)	10/12/2004 4:21:00 PM
From: dougSF30	Respond to of 275872

Only 5% Q4/Q3 rev growth projected, GM 56%... Not so hot... -- Revenue in the fourth quarter is expected to be between $8.6 billion and $9.2 billion. -- Gross margin percentage for the fourth quarter is expected to be approximately 56 percent, plus or minus a couple of points. The gross margin percentage could vary from expectations based on changes in revenue levels, product mix and pricing, manufacturing yields, changes in unit costs, capacity utilization and the existence of excess capacity, and the timing and execution of the manufacturing ramp and associated costs. -- Expenses (R&D plus MG&A) in the fourth quarter are expected to be between $2.4 billion and $2.5 billion. Expenses, particularly certain marketing and compensation expenses, could vary from expectations depending on the level of demand for our products and the level of revenue and profits. -- R&D spending for 2004 is expected to be $4.7 billion, slightly below the previous expectation of $4.8 billion. -- The capital spending expectation for 2004 is unchanged at between $3.6 billion and $4.0 billion. -- Gains from equity investments and interest and other in the fourth quarter are expected to be approximately $65 million. -- The tax rate for the fourth quarter is expected to be approximately 30.5 percent. The tax rate expectation is based on current tax law and current expected income, and assumes Intel continues 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, the resolution of issues arising from tax audits with various tax authorities and the ability to realize deferred tax assets. -- Depreciation for the fourth quarter is expected to be between $1.1 billion and $1.2 billion. -- Amortization of acquisition-related intangibles and costs is expected to be approximately $40 million in the fourth quarter and approximately $180 million for the full year.