[November 19, 2015] |
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Intel Announces Increase in Quarterly Cash Dividend, 2016 Business Outlook at Annual Investor Meeting
At Intel (News - Alert) Corporation's annual investor meeting today, the company
announced that its board of directors has approved an increase in its
cash dividend to $1.04 per-share on an annual basis, an eight-cent
increase, beginning with the dividend that will be declared in the first
quarter of 2016. Intel also provided the 2016 Business Outlook.
"Our financials show that Intel's transformation is underway, and we're
forecasting growth for 2016," said Stacy Smith, Intel CFO. "The 2016
dividend increase reflects confidence in the strategy and Intel's
ongoing commitment to create value and return cash to shareholders."
At today's investor meeting, Intel CEO Brian Krzanich addressed Intel's
strategy to utilize the company's core assets to move into profitable,
complementary market segments. He described Intel's Client Computing
business as a strong foundation, which delivers healthy profits and
critical intellectual property to the rest of Intel. The Data Center,
Internet of Things and Memory businesses are expected to be growth
engines for the company.
Full-year 2016 Business Outlook
Intel's Business Outlook reflects the impact of a 53 week fiscal 2016.
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Revenue: Growth in the mid-single digits.
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Gross margin percentage: 62 percent, plus or minus a couple points
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R&D plus MG&A spending: Spending as a percent of revenue is expected
to be down half a point.
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Capital spending: $10 billion, plus or minus $500 million (includes
approximately $1.5 billion for Memory)
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Dividend: $1.04 per-share on an annual basis, an eight-cent increase
year-over-year, beginning with the dividend that will be declared in
the first quarter of 2016.
Supplemental outlook and other information will be provided during
today's investor meeting. For the live webcast and presentation
materials, visit www.intc.com.
Risk Factors
The above statements and any others in this release that refer to future
plans and expectations are forward-looking statements that involve a
number of risks and uncertainties. Words such as "anticipates,"
"expects," "intends," "goals," "plans," "believes," "seeks,"
"estimates," "continues," "may," "will," "should," and variations of
such words and similar expressions are intended to identify such
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 expectations.
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Dividend declarations and the dividend rate are at the discretion of
Intel's board of directors, and plans for future dividendsmay be
revised by the board. Intel's dividend program could be affected by
changes in Intel's operating results, its capital spending programs,
changes in its cash flows and changes in the tax laws, as well as by
the level and timing of acquisition and investment activity.
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Demand for Intel's products is highly variable and could differ from
expectations due to factors including changes in business and economic
conditions; consumer confidence or income levels; the introduction,
availability and market acceptance of Intel's products, products used
together with Intel products and competitors' products; competitive
and pricing pressures, including actions taken by competitors; supply
constraints and other disruptions affecting customers; changes in
customer order patterns including order cancellations; and changes in
the level of inventory at customers.
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Intel's 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;
excess or obsolete inventory; changes in unit costs; defects or
disruptions in the supply of materials or resources; and product
manufacturing quality/yields. Variations in gross margin may also be
caused by the timing of Intel product introductions and related
expenses, including marketing expenses, and Intel's ability to respond
quickly to technological developments and to introduce new products or
incorporate new features into existing products, which may result in
restructuring and asset impairment charges.
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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. Results may also be affected by the formal or informal
imposition by countries of new or revised export and/or import and
doing-business regulations, which could be changed without prior
notice.
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Intel operates in highly competitive industries and its operations
have high costs that are either fixed or difficult to reduce in the
short term.
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The amount, timing and execution of Intel's stock repurchase program
could be affected by changes in Intel's priorities for the use of
cash, such as operational spending, capital spending, acquisitions,
and as a result of changes to Intel's cash flows or changes in tax
laws.
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Intel's expected tax rate is based on current tax law and current
expected income and 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.
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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.
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Product defects or errata (deviations from published specifications)
may adversely impact our expenses, revenues and reputation.
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Intel's results could be affected by litigation or regulatory matters
involving intellectual property, stockholder, consumer, antitrust,
disclosure and other issues. 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.
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Intel's results may be affected by the timing of closing of
acquisitions, divestitures and other significant transactions. In
addition, risks associated with our pending acquisition of Altera (News - Alert) are
described in the "Forward Looking Statements" paragraph of Intel's
press release dated June 1, 2015, which risk factors are incorporated
by reference herein.
A detailed discussion of these and other factors that could affect
Intel's results is included in Intel's SEC (News - Alert) filings, including the
company's most recent reports on Forms 10-K and 10-Q and earnings
release.
About Intel
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 blogs.intel.com,
and about Intel's conflict-free efforts at conflictfree.intel.com.
Intel 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 others.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151119006336/en/
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