Intel Raises Second-Quarter and Full-Year Revenue and Gross Margin Expectations
Intel's second-quarter Business Outlook was originally published in the
company's first-quarter 2014 earnings release, available at intc.com.
The company is scheduled to report its second-quarter financial results
Intel's updated Business Outlook does not include the potential impact
of any business combinations, asset acquisitions, divestitures,
strategic investments and other significant transactions that may be
completed after June 12. Intel's updated Business Outlook is posted on intc.com
and may be reiterated in public or private meetings with investors and
others. The updated Business Outlook will be effective through the close
of business on
The above statements and any others in this document that refer to plans
and expectations for the second quarter, the year and the future are
forward-looking statements that involve a number of risks and
uncertainties. Words such as "anticipates," "expects," "intends,"
"plans," "believes," "seeks," "estimates," "may," "will," "should" and
their variations identify forward-looking statements. Statements that
refer to or are based on projections, uncertain events or assumptions
also identify forward-looking statements. Many factors could affect
Intel's actual results, and variances from Intel's current expectations
regarding such factors could cause actual results to differ materially
from those expressed in these forward-looking statements.
Intel'sgross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; segment product mix; the timing and execution of the manufacturing ramp and associated costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; and product manufacturing quality/yields. Variations in gross margin may also be caused by the timing of Intelproduct introductions and related expenses, including marketing expenses, and Intel'sability to respond quickly to technological developments and to introduce new products or incorporate new features into existing products, which may result in restructuring and asset impairment charges.
Intel'sproducts is highly variable and, in recent years, Intelhas experienced declining orders in the traditional PC market segment. Demand could be different from Intel'sexpectations due to factors including changes in business and economic conditions; consumer confidence or income levels; customer acceptance of Intel's and competitors' products; competitive and pricing pressures, including actions taken by competitors; supply constraints and other disruptions affecting customers; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers.
Inteloperates in highly competitive industries and its operations have high costs that are either fixed or difficult to reduce in the short term.
- The tax rate expectation is based on current tax law and current expected income. The tax rate may be affected by the jurisdictions in which profits are determined to be earned and taxed; changes in the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits with various tax authorities, including payment of interest and penalties; and the ability to realize deferred tax assets.
- Gains or losses from equity securities and interest and other could vary from expectations depending on gains or losses on the sale, exchange, change in the fair value or impairments of debt and equity investments; interest rates; cash balances; and changes in fair value of derivative instruments.
Intel'sresults could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates.
- Intel's results could be affected by the timing of closing of acquisitions, divestitures and other significant transactions.
Intel'sresults could be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust, disclosure and other issues, such as the litigation and regulatory matters described in Intel's SECfilings. An unfavorable ruling could include monetary damages or an injunction prohibiting Intelfrom manufacturing or selling one or more products, precluding particular business practices, impacting Intel's ability to design its products, or requiring other remedies such as compulsory licensing of intellectual property.
A detailed discussion of these and other factors that could affect
Intel's results is included in Intel's
* Other names and brands may be claimed as the property of others.
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