Intel
Corporation
2200
Mission College Blvd.
Santa
Clara, CA 95054
 |
 |
| CONTACTS: |
Amy
Kircos
Media Relations
480-552-8803
amy.kircos@intel.com
|
Kevin
Sellers
Investor Relations
480-363-2642
kevin.k.sellers@intel.com
|
Intel
Announces 12.5 Percent Increase in Cash Dividend
SANTA
CLARA, Calif., Nov. 16, 2009 –Intel Corporation today announced that its board
of directors has approved a 12.5 percent increase in the quarterly cash dividend
to 15.75 cents per share (63 cents per share on an annual basis), beginning with
the dividend that will be declared in the first quarter of 2010.
“Intel’s industry-leading product
portfolio, outstanding execution and focus on the next wave of innovation and
growth set the company up solidly for the future,” said Paul Otellini, Intel
president and CEO. “With one of the highest dividend yields in the technology
industry, the dividend increase is another sign of our confidence in business
prospects going forward.”
Intel began paying a cash dividend in
1992 and has paid out approximately $16.6 billion to its stockholders. Intel
cash dividends for the first through third quarters of 2009 total approximately
$2.3 billion.
Intel
[NASDAQ: INTC], the world leader in silicon innovation, develops technologies,
products and initiatives to continually advance how people work and live.
Additional information about Intel is available at www.intel.com/pressroom and
blogs.intel.com.
Risk
Factors
The above
statements and any others in this document are forward-looking statements that
involve a number of risks and uncertainties. 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 presently considers the following to be
the important factors that could cause actual results to differ materially from
the corporation’s expectations.
|
|
· Dividend
declarations and the dividend rate are at the discretion of Intel's board
of directors, and plans for future dividends may be revised by the board.
Intel's dividend program could be affected by changes in Intel's operating
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.
|
|
|
· Demand
could be different from Intel's expectations due to factors including
changes in business and economic conditions; customer acceptance of
Intel’s and competitors’ products; changes in customer order patterns
including order cancellations; and changes in the level of inventory at
customers.
|
|
|
·
Intel operates in intensely competitive industries that are
characterized by a high percentage of costs that are fixed or difficult to
reduce in the short term and product demand that is highly variable and
difficult to forecast. Additionally, Intel is in the process of
transitioning to its next generation of products on 32nm process
technology, and there could be execution issues associated with these
changes, including product defects and errata along with lower than
anticipated manufacturing yields. Revenue and the gross
margin percentage are affected by the timing of new Intel product
introductions and the demand for and market acceptance of Intel's
products; actions taken by Intel's competitors, including product
offerings and introductions, marketing programs and pricing pressures and
Intel’s response to such actions; and Intel’s ability to respond quickly
to technological developments and to incorporate new features into its
products.
|
|
|
·
The gross margin percentage could vary significantly from
expectations based on changes in revenue levels; capacity utilization;
start-up costs, including costs associated with new 32nm process
technology; variations in inventory valuation, including variations
related to the timing of qualifying products for sale; excess or obsolete
inventory; product mix and pricing; manufacturing yields; changes in unit
costs; impairments of long-lived assets, including manufacturing,
assembly/test and intangible assets; and the timing and execution of the
manufacturing ramp and associated
costs.
|
|
|
·
Expenses, particularly certain marketing and compensation expenses,
as well as restructuring and asset impairment charges, vary depending on
the level of demand for Intel's products and the level of revenue and
profits.
|
|
|
·
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 realized on the sale or exchange
of securities; gains or losses from equity method investments; impairment
charges related to debt securities as well as equity and other
investments; interest rates; cash balances; and changes in fair value of
derivative instruments.
|
|
|
·
The majority of our non-marketable equity investment portfolio
balance is concentrated in companies in the flash memory market segment,
and declines in this market segment or changes in management’s plans with
respect to our investments in this market segment could result in
significant impairment charges, impacting restructuring charges as well as
gains/losses on equity investments and interest and
other.
|
|
|
·
Intel's results could be impacted 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 adverse effects associated
with product defects and errata (deviations from published
specifications), and by litigation or regulatory matters involving
intellectual property, stockholder, consumer, antitrust and other issues,
such as the litigation and regulatory matters described in Intel's SEC
reports.
|
A
detailed discussion of these and other factors that could affect Intel’s results
is included in Intel’s SEC filings, including the report on Form 10-Q for the
fiscal quarter ended September 26, 2009.
–
30 –
Intel and
the Intel logo are trademarks of Intel Corporation in the United States and
other countries.
*Other
names and brands may be claimed as the property of
others.