Intel Updates Fourth-Quarter Financial Expectations

Intel Updates Fourth-Quarter Financial Expectations

As a result of the legal settlement announced today with Advanced Micro Devices (AMD), Intel Corporation adjusted its fourth-quarter financial expectations to reflect the impact of the $1.25 billion settlement payment. Intel now expects spending (R&D plus MG&A) in the fourth quarter to be approximately $4.2 billion, up from $2.9 billion. In addition, the effective tax rate is expected to be approximately 20 percent, down from 26 percent. All other expectations are unchanged.


Under terms of the agreement, the parties will end all outstanding litigation including antitrust and patent cross license disputes. AMD will withdraw all of its regulatory complaints against Intel worldwide and both parties will enter into a new 5-year patent cross license agreement. In addition, Intel will pay AMD $1.25 billion.

Intel's fourth-quarter Business Outlook was originally published in the company's third-quarter earnings release, available at www.intc.com. The company is scheduled to report its fourth-quarter financial results on Jan. 14.

Through Nov. 25, Intel's corporate representatives may reiterate the Business Outlook during private meetings with investors, investment analysts, media and others. From the close of business on Nov. 25 until publication of the company's fourth-quarter earnings release, Intel will observe a "Quiet Period" during which the Business Outlook disclosed in the company's news releases and filings with the SEC should be considered to be historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.

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.

• 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 the 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 Sept. 26 2009.


Link: Intel

Skrevet den 13. Nov 2009. Nyheden er læst 348 gang(e).

Del med dine venner

     

0 kommentarer
Skriv kommentar til nyheden Kommentarer til nyheden fra Facebook

 

FSP Hydro X 650W PSU

FSP er en velkendt og gammel kending på markedet for strømforsyninger. De laver strømforsyninger i all

Læs Mere

Razer Man O'War

Razer er endnu engang tilbage på redaktionen, og denne gang har vi fået fornøjelsen af at have deres ny

Læs Mere

AMD Radeon RX 480 8 GB

Så oprandt dagen hvor NDA på AMD's nye RX 480 grafikkort blev løftet, og v

Læs Mere

Intel Core i7-6900K Broadwell-E

Intels nye serie af Broadwell-E processorer blev sendt på markedet pr. 30. maj 2016, da

Læs Mere

EpicGear THUNDEROUZ Over-Ear Gaming Headset

EpicGear udvider konstant deres sortiment, og denne gang skal vi kigge på deres gaming headset ved navn THUNDEROUZ.

Læs Mere

be quiet! System Power 8 500W PSU

be quiet! udvider og forbedrer hele tiden deres produkter. Denne gang skal vi kigge på deres System Power strø

Læs Mere

NETGEAR ReadyNAS 214

NETGEAR er en velkendt producent indenfor netværksprodukter, og i dag har de bedt os om

Læs Mere

MSI GeForce GTX 1080 Gaming X 8G

Så er vi klar til at teste storebroderen til det tidligere testede MSI GeForce GTX 1070

Læs Mere

 

Nyeste Videoer og Trailers

Seneste nyheder

AMD klar med prototyper af monster CPU

Rygterne har gennem længere tid sviret omkring, at AMD skulle være klar med et monster af en CPU med 32 kerner
Læs Mere

Apple er blevet præsenteret for et patent søgsmål

Apple, som står bag rigtig mange computere og håndholdte elektroniske enheder i hjemmene verden over, er bleve
Læs Mere

GIGABYTE er klar med GTX 1070 i miniformat

Anmeldelserne af GeForce GTX 1070 ruller derudaf, og Tweak.dk har da også været turen rundt med begge nye kort
Læs Mere

AMD opkøber softwarefirmaet HiAlgo

AMD, der lige har lanceret det nye RX 480 grafikkort, har opkøbt softwareudvikler firmaet HiAlgo.
Læs Mere

Youtuber hjemmebrygger en fuldt funktionel laser bazooka!

Man skal se meget for at tro på det, men der florerer lige nu en video på YouTube af en ung mand, som har bygg
Læs Mere

Se en test af Radeon RX 480 i CrossFire

NDA er netop blevet løftet på de nye RX 480 grafikkort fra AMD, og det første reelle CrossFireX review er alle
Læs Mere

Samsung Notebook 7 - Super lækre sager!

Samsung lancerer lillebroren til deres 9-serie notebooks. Hurtig opladning, lækre specifikationer og fuldført
Læs Mere

Stripdown: Sapphire Radeon RX 480 skilt ad!

Se alle detaljerne af det kommende AMD Radeon RX 480 kort. Vi har samlet lækre billeder af hele kortet, og har
Læs Mere
Indsend nyhed
Har du fundet en fed nyhed så indsend den så alle andre på Tweak.dk kan få glæde af den.