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<TYPE>EX-99.1
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<FILENAME>a4840454ex991.txt
<DESCRIPTION>INTEL CORPORATION EXHIBIT 99.1
<TEXT>
Exhibit 99.1
Intel First-Quarter Business at High End of Expectations;
Revenue Expected to be Between $9.2 Billion and $9.4 Billion
SANTA CLARA, Calif.--(BUSINESS WIRE)--March 10, 2005--Intel Corporation
expects revenue for the first quarter to be between $9.2 billion and $9.4
billion, as compared to the previous range of $8.8 billion to $9.4 billion.
The first-quarter gross margin percentage is expected to be approximately
57 percent, plus or minus a point, as compared to the previous expectation of 55
percent, plus or minus a couple of points, primarily due to lower than expected
65nm start-up costs and microprocessor unit costs. All other expectations are
unchanged.
This Business Update is a scheduled update to the company's Business
Outlook for the quarter, which ends April 2. Intel's first-quarter Business
Outlook was originally published in the company's fourth-quarter 2004 earnings
release, available at www.intc.com. The company will discuss this update during
a public webcast at 2:30 p.m. PST today at www.intc.com, with a replay available
until April 19.
Intel, the world's largest chip maker, is also a leading manufacturer of
computer, networking and communications products. Additional information about
Intel is available at www.intel.com/pressroom.
This Business Update and the Jan. 11 Business Outlook are forward-looking
statements and involve a number of risks and uncertainties. This Business Update
does not include the potential impact of any mergers, acquisitions, divestitures
or other business combinations that may be completed after March 9, 2005. These
statements also do not include any impact related to the expensing of stock
options under the Financial Accounting Standards Board's Statement 123R, which
is effective for quarters beginning after June 15, 2005. Expensing of stock
options would decrease gross margin, increase expenses (including R&D expenses)
and affect the tax rate. 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 factors set forth below to be
the important factors that could cause actual results to differ materially from
Intel's published expectations. A more detailed discussion of these factors, as
well as other factors that could affect Intel's results, is contained in Intel's
SEC filings, including the report on Form 10-K for the year ended Dec. 25, 2004.
-- Intel operates in intensely competitive industries. Revenue and the
gross margin percentage are affected by the demand for and market
acceptance of Intel's products, the availability of sufficient
inventory to meet demand, pricing pressures and actions taken by
Intel's competitors, and the timing of new product introductions.
Factors that could cause demand to be different from Intel's
expectations include changes in customer order patterns, including
order cancellations, changes in the level of inventory at customers
and changes in business and economic conditions.
-- The gross margin percentage could vary from expectations based on
changes in revenue levels, product mix and pricing, manufacturing
yields, changes in unit costs, capacity utilization and the existence
of excess capacity, and the timing and execution of the manufacturing
ramp and associated costs, including start-up costs.
-- The gross margin percentage could also be affected by excess or
obsolete inventory, variations in inventory valuation and impairment
of manufacturing or assembly and test assets.
-- Expenses, particularly certain marketing and compensation expenses,
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, assumes Intel continues to receive tax benefits for
export sales, and does not reflect the impact of any potential
repatriation of cash under the American Jobs Creation Act. The tax
rate may be affected by the closing of acquisitions or divestitures,
the jurisdiction in which profits are determined to be earned and
taxed, changes in the estimates of credits and deductions, the
resolution of issues arising from tax audits with various tax
authorities and the ability to realize deferred tax assets.
-- The expectation regarding gains or losses from equity securities and
interest and other could vary from expectations depending on equity
market levels and volatility, gains or losses realized on the sale or
exchange of securities, impairment charges related to non-marketable
and other investments, interest rates, cash balances and changes in
fair value of derivative instruments.
-- Intel's results could be impacted by unexpected economic, social and
political conditions in the countries in which Intel, its customers or
its suppliers operate, including security risks, possible
infrastructure disruptions and fluctuations in foreign currency
exchange rates.
-- Intel's results could also 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.
*Intel is a mark or registered trademark of Intel Corporation or its
subsidiaries in the United States and other countries.
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