- Revenue: $13.6 billion, plus or minus $500 million.
- Gross margin percentage: 62 percent and 63 percent Non-GAAP (excluding amortization of acquisition-related intangibles), both plus or minus a couple of percentage points.
- R&D plus MG&A spending: approximately $4.6 billion.
- Amortization of acquisition-related intangibles: approximately $80 million.
- Impact of equity investments and interest and other: loss of approximately $20 million.
- Depreciation: approximately $1.6 billion.
- Gross margin percentage: 64 percent and 65 percent Non-GAAP (excluding amortization of acquisition-related intangibles), both plus or minus a few percentage points, unchanged.
- Spending (R&D plus MG&A): $18.3 billion, plus or minus $200 million, unchanged.
- Amortization of acquisition-related intangibles: approximately $300 million, unchanged.
- Depreciation: $6.4 billion, plus or minus $100 million, down $100 million from prior expectations.
- Tax Rate: approximately 28 percent down from prior expectations of 29 percent.
- Full-year capital spending: $12.5 billion, plus or minus $400 million, unchanged.
|GAAP Financial Comparison|
|Q1 2012||Q4 2011||vs. Q4 2011|
|Revenue||$12.9 billion||$13.9 billion||down 7%|
|Gross Margin||64.0%||64.5%||down 0.5 pts.|
|Operating Income||$3.8 billion||$4.6 billion||down 17%|
|Net Income||$2.7 billion||$3.4 billion||down 19%|
|Earnings Per Share||53 cents||64 cents||down 17%|
|Non-GAAP Financial Comparison|
|Q1 2012||Q4 2011||vs. Q4 2011|
|Gross Margin||65.1%||65.4%||down 0.3 pts.|
|Operating Income||$4.0 billion||$4.8 billion||down 16%|
|Net Income||$2.9 billion||$3.5 billion||down 18%|
|Earnings Per Share||56 cents||67 cents||down 16%|
|Non-GAAP results exclude the amortization of acquisition-relatedintangible assets and the related income tax effect of these charges.|
- PC Client Group revenue of $8.5 billion, down 7 percent sequentially.
- Data Center Group revenue of $2.5 billion, down 10 percent sequentially.
- Other Intel® architecture group revenue of $1.1 billion, down 2 percent sequentially.
- The first quarter of 2012 includes full-quarter revenue contributions from last year’s McAfee and Infineon Wireless Solutions acquisitions of $935 million.
- The first quarter of 2012 had 13 weeks while the first quarter of 2011 had 14 weeks.
- 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 of 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.
- Intel is in the process of transitioning to its next generation of products on 22nm process technology, and there could be execution and timing issues associated with these changes, including products defects and errata and lower than anticipated manufacturing yields.
- 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.
- 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 on the sale, exchange, change in the fair value or impairments of debt and equity investments; interest rates; cash balances; and changes in fair value of derivative instruments.
- The majority of Intel’s 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 Intel’s 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 affected 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.
- 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.
- 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 in Intel's SEC reports. An unfavorable ruling could include monetary damages or an injunction prohibiting Intel 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.