As a result of stronger than expected demand for business PCs, Intel
Corporation now expects second-quarter revenue to be $13.7 billion, plus
or minus $300 million, as compared to the previous range of $13.0
billion, plus or minus $500 million. The company is forecasting the
mid-point of the gross margin range to increase by 1 point to 64
percent, plus or minus a couple of percentage points, driven mostly by
higher PC unit volume. R&D plus MG&A spending is expected to be
approximately $4.9 billion, $100 million higher than the prior
expectation of approximately $4.8 billion, driven largely by revenue-
and profit-dependent items. The tax rate for the second quarter is
expected to be 28 percent as compared to the prior expectation of 27
percent due to higher profits in higher tax jurisdictions. The
expectation for second-quarter depreciation remains unchanged.
Intel now expects some revenue growth for the year as compared to the
previous outlook of approximately flat. The change in outlook is driven
mostly by strong demand for business PCs. The company will provide
additional commentary on all business segments when it reports
second-quarter earnings on July 15. The full-year gross margin
percentage is now expected to be in the upper half of the previous range
of 61 percent, plus or minus a few percentage points, driven mostly by
expected improvements in unit cost and volume. A new full-year gross
margin range will be provided on July 15. Full-year R&D plus MG&A
spending is expected to be $19.2 billion, plus or minus $200 million,
higher than the prior expectation of $18.9 billion, plus or minus $200
million, driven mostly by revenue- and profit-dependent items. The tax
rate for each of the remaining quarters of 2014 is expected to be 28
percent, as compared to the prior expectation of 27 percent due to
higher profits in higher tax jurisdictions. The expectations for
full-year depreciation and capital spending are unchanged. No other
guidance from the April 15 earnings release remains in effect.
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
on July 15.
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 June 17, unless earlier updated. Intel's Quiet Period
will start from the close of business on June 17 ntil publication of
the company's second-quarter earnings release, scheduled for July 15.
During the Quiet Period, all of the Business Outlook and other
forward-looking statements disclosed in the company's news releases and
filings with the SEC should be considered as historical, speaking as of
prior to the Quiet Period only and not subject to an update by the
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
presently considers the following to be important factors that could
cause actual results to differ materially from the company's
A detailed discussion of these and other factors that could affect
Intel's results is included in Intel's SEC filings, including the
company's most recent reports on Form 10-K and Form 10-Q.
Intel (NASDAQ: INTC) is a world leader in computing innovation. The
company designs and builds the essential technologies that serve as the
foundation for the world's computing devices. As a leader in corporate
responsibility and sustainability, Intel also manufactures the world's
first commercially available "conflict-free" microprocessors. Additional
information about Intel is available at newsroom.intel.com
and about Intel's conflict-free efforts at conflictfree.intel.com.
Intel, Core 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
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