Intel Updates Fourth-Quarter Business Expectations
Posted by: [PM] on: 12/08/2003 03:04 PM [ Print | 0 comment(s) ] · 590 views
Intel Corporation provided a scheduled update last week to the company's Business Outlook for the fourth quarter, which ends Dec. 27.
Intel expects revenue to be between $8.5 billion and $8.7 billion, as compared to the previous range of $8.1 billion to $8.7 billion. The gross margin percentage is expected to be 62 percent, plus or minus a point, as compared to the previous expectation of 60 percent, plus or minus a couple of points. The company's Intel Architecture business is experiencing solid seasonal growth while demand for communications products remains on track with the company's expectations for the quarter.
Intel anticipates taking a fourth-quarter goodwill impairment charge related to the Wireless Communications and Computing Group (WCCG). The long-term growth expectations for this business are no longer projected to be as high as previously expected. The impairment charge is likely to be approximately $600 million. The amount of the charge will be reported in the company's fourth-quarter earnings release following completion of the valuation analysis required under accounting rules. R&D spending is expected to be $4.4 billion for the year, as compared to the previous expectation of $4.3 billion. Expenses are expected to be approximately $2.3 billion, at the high end of the previous expectation of $2.2 billion to $2.3 billion. The tax rate for the fourth quarter is expected to be approximately 32 percent, as compared to the previous expectation of 31.5 percent. The revised tax rate expectation assumes the impact of a $600 million goodwill impairment charge related to WCCG, which would not be deductible for tax purposes, and includes other anticipated tax-related items. The net earnings-per-share impact of the assumed $600 million goodwill impairment charge and the other anticipated tax-related items is $.06 per share. All other expectations are unchanged.
Intel anticipates taking a fourth-quarter goodwill impairment charge related to the Wireless Communications and Computing Group (WCCG). The long-term growth expectations for this business are no longer projected to be as high as previously expected. The impairment charge is likely to be approximately $600 million. The amount of the charge will be reported in the company's fourth-quarter earnings release following completion of the valuation analysis required under accounting rules. R&D spending is expected to be $4.4 billion for the year, as compared to the previous expectation of $4.3 billion. Expenses are expected to be approximately $2.3 billion, at the high end of the previous expectation of $2.2 billion to $2.3 billion. The tax rate for the fourth quarter is expected to be approximately 32 percent, as compared to the previous expectation of 31.5 percent. The revised tax rate expectation assumes the impact of a $600 million goodwill impairment charge related to WCCG, which would not be deductible for tax purposes, and includes other anticipated tax-related items. The net earnings-per-share impact of the assumed $600 million goodwill impairment charge and the other anticipated tax-related items is $.06 per share. All other expectations are unchanged.
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