Intel Lowers Third-Quarter Revenue Outlook
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Relative to the prior forecast, the company is seeing customers reducing inventory in the supply chain versus the normal growth in third-quarter inventory; softness in the enterprise PC market segment; and slowing emerging market demand. The data center business is meeting expectations.
The company's expectation for third-quarter gross margin is now 62 percent, plus or minus one percentage point; lower than the previous expectation of 63 percent, plus or minus a couple of percentage points.
Expectations for R&D and MG&A spending and depreciation in the third quarter remain unchanged.
Full-year capital spending is expected to be below the low-end of the
company's previous outlook of
The outlook for the third quarter does not include the effect of any
acquisitions, divestitures or similar transactions that may be completed
after
Status of Business Outlook
Intel's Business Outlook is posted on intc.com and may be reiterated in
public or private meetings with investors and others. The Business
Outlook will be effective through the close of business
Risk Factors
The above statements and any others in this document that refer to plans
and expectations for the third 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.
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Demand could be different from
Intel's expectations due to factors including changes in business and economic conditions, including supply constraints and other disruptions affecting customers; 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. Uncertainty in global economic and financial conditions poses a risk that consumers and businesses may defer purchases in response to negative financial events, which could negatively affect product demand and other related matters. -
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. Revenue and the gross margin percentage are affected by the timing ofIntel product introductions and the demand for and market acceptance ofIntel's products; actions taken byIntel'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 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; start-up costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; product manufacturing quality/yields; and impairments of long-lived assets, including manufacturing, assembly/test and intangible assets.
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Intel's results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries whereIntel , 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. -
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. - Intel's results could be affected by the timing of closing of acquisitions and divestitures.
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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, disclosure and other issues, such as the litigation and regulatory matters described inIntel's SEC reports. An unfavorable ruling could include monetary damages or an injunction prohibitingIntel from 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
Conference Call Schedule
There is no conference call scheduled in association with this announcement.
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