Intel Announces Increase in Quarterly Cash Dividend, 2016 Business Outlook at Annual Investor Meeting
"Our financials show that Intel's transformation is underway, and we're
forecasting growth for 2016," said
At today's investor meeting,
Full-year 2016 Business Outlook
Intel's Business Outlook reflects the impact of a 53 week fiscal 2016.
- Revenue: Growth in the mid-single digits.
- Gross margin percentage: 62 percent, plus or minus a couple points
- R&D plus MG&A spending: Spending as a percent of revenue is expected to be down half a point.
$10 billion, plus or minus $500 million(includes approximately $1.5 billionfor Memory)
$1.04per-share on an annual basis, an eight-centincrease year-over-year, beginning with the dividend that will be declared in the first quarter of 2016.
Supplemental outlook and other information will be provided during today's investor meeting. For the live webcast and presentation materials, visit www.intc.com.
The above statements and any others in this release that refer to future
plans and expectations are forward-looking statements that involve a
number of risks and uncertainties. Words such as "anticipates,"
"expects," "intends," "goals," "plans," "believes," "seeks,"
"estimates," "continues," "may," "will," "should," and variations of
such words and similar expressions are intended to identify such
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
Dividend declarations and the dividend rate are at the discretion of
Intel'sboard of directors, and plans for future dividends may be revised by the board. Intel'sdividend program could be affected by changes in Intel'soperating results, its capital spending programs, changes in its cash flows and changes in the tax laws, as well as by the level and timing of acquisition and investment activity.
Intel'sproducts is highly variable and could differ from expectations due to factors including changes in business and economic conditions; consumer confidence or income levels; the introduction, availability and market acceptance of Intel'sproducts, products used together with Intelproducts 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.
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'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. Results may also be affected by the formal or informal imposition by countries of new or revised export and/or import and doing-business regulations, which could be changed without prior notice.
Inteloperates in highly competitive industries and its operations have high costs that are either fixed or difficult to reduce in the short term.
The amount, timing and execution of
Intel'sstock repurchase program could be affected by changes in Intel'spriorities for the use of cash, such as operational spending, capital spending, acquisitions, and as a result of changes to Intel'scash flows or changes in tax laws.
Intel'sexpected tax rate is based on current tax law and current expected income and 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.
- Product defects or errata (deviations from published specifications) may adversely impact our expenses, revenues and reputation.
Intel'sresults could be affected by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust, disclosure and other issues. 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'sability to design its products, or requiring other remedies such as compulsory licensing of intellectual property.
Intel'sresults may be affected by the timing of closing of acquisitions, divestitures and other significant transactions. In addition, risks associated with our pending acquisition of Altera are described in the "Forward Looking Statements" paragraph of Intel's press release dated June 1, 2015, which risk factors are incorporated by reference herein.
A detailed discussion of these and other factors that could affect
*Other names and brands may be claimed as the property of others.
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