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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (26090)	11/10/1998 4:34:00 PM
From: Duker	Respond to of 70976

Intel Fourth Quarter Revenue To Be Above Expectations SANTA CLARA, Calif., Nov. 10, 1998 - Stronger than anticipated demand for PC products across all market segments and in all geographies is expected to cause revenue to exceed Intel's expectations for the fourth quarter of 1998, Intel Corporation said today. When the company announced third quarter earnings in October, the expectations were that revenue in the fourth quarter of 1998 would be up slightly from the third quarter revenue of $6.7 billion. The company now expects higher revenue. 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 were not closed by the end of the third quarter of 1998. The company expects revenue for the fourth quarter of 1998 to be up approximately 8 to 10 percent from third quarter revenue of $6.7 billion. Gross margin percentage in the fourth quarter of 1998 is expected to be up a couple of points from 53 percent in the third quarter. In the short-term, Intel's gross margin percentage varies primarily with revenue levels and product mix. Expenses (R&D plus MG&A) in the fourth quarter of 1998 are expected to be approximately 8 to 10 percent higher than third quarter expenses of $1.4 billion, up from earlier guidance of 3 to 5 percent higher than third quarter expenses. Expenses are dependent in part on the level of revenue. Intel is still making progress on reducing headcount and the company expects to be within a few hundred people of its previously announced headcount reduction target of approximately 3,000 employees by the end of the year. R&D spending for the fourth quarter of 1998 is expected to be approximately $650 million. The company expects interest and other income for the fourth quarter of 1998 to be approximately $200 million, up from prior guidance of $160 million, assuming no significant changes in expected interest rates or cash balances, and no unanticipated items. The tax rate for the fourth quarter of 1998 is expected to be 33.0 percent. Capital spending for 1998 is expected to be approximately $4.2 billion. This estimate includes the acquisition of the capital assets of Digital Equipment Corporation's semiconductor manufacturing operations. Depreciation in the fourth quarter of 1998 is expected to be approximately $780 million. The above statements contained in this outlook are forward-looking statements that involve a number of risks and uncertainties. In addition to factors discussed above, among other factors that could cause actual results to differ materially are the following: business and economic conditions such as the current global financial difficulties, and growth in the computing industry in various geographic regions; changes in customer order patterns, including changes in customer and channel inventory levels; changes in the mixes of microprocessor types and speeds, purchased components and other products; competitive factors, such as rival chip architectures and manufacturing technologies, competing software-compatible microprocessors and acceptance of new products in specific market segments; pricing pressures; excess or obsolete inventory and variations in inventory valuation; continued success in technological advances, including development and implementation of new processes and strategic products for specific market segments; execution of the manufacturing ramp; effects of excess or shortage of manufacturing capacity; unanticipated costs or other adverse effects associated with processors and other products containing errata (deviations from published specifications); impact on the company's business due to internal systems or systems of suppliers and other third parties adversely affected by year 2000 problems; litigation involving antitrust, intellectual property, consumer and other issues; and other risk factors listed from time to time in the company's SEC reports, including but not limited to the report on Form 10-Q for the quarter ended Sept. 26, 1998 (Part I, Item 2, Outlook section). Copies of this release and Intel's 1997 annual report can be obtained via the Internet at www.intc.com or by calling Intel's transfer agent, Harris Trust and Savings Bank, at 1-800-298-0146. 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. Corporate Press Kit Intel Corporate Press Releases Corporate Photo Archive Contact the Intel Press Relations Manager * Legal Information © 1998 Intel Corporation