[November 20, 2014] |
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Intel Announces Increase in Quarterly Cash Dividend, 2015 Business Outlook at Annual Investor Meeting
SANTA CLARA, Calif. --(Business Wire)--
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 96 cents-per-share on an annual basis, a 6-cent
increase, beginning with the dividend that will be declared in the first
quarter of 2015. Intel also provided the 2015 business outlook.
"Today's dividend announcement reflects the board's confidence in
Intel's strategy," said Intel Chairman Andy Bryant. "It also reflects
the board's ongoing commitment to create value and return cash to
Intel's stockholders."
At the investor meeting, Intel CEO Brian Krzanich emphasized that
Intel's highest shareholder value will come from a strategy to utilize
the core assets that drive the company's PC and data center businesses
to move into profitable, complementary market segments. Intel's
leading-edge manufacturing capability, Intel architecture, and the use
of shared IP are key elements of the growth strategy.
Full-year 2015 Business Outlook
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Revenue: Growth in the mid-single digits.
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Gross margin percentage: 62 percent, plus or minus two points.
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R&D plus MG&A spending: Spending as a percent of revenue is expected
to be down with spending of approximately $20 billion, plus or minus
$400 million.
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Capital spending: Approximately $10.5 billion, plus or minus $500
million.
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Dividend: 96 cents-per-share on an annual basis, a 6-cent increase
year-over-year, beginning with the dividend that will be declared in
the first quarter of 2015.
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 statements in this release that refer to plans and expectations for
the fourth 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. Intel presently considers
the following to be important factors that could cause actual results to
differ materially from the cmpany'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 dividends may 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
Intel's expectations due to factors including changes in the business
and economic conditions; consumer confidence or income levels;
customer acceptance of Intel's 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.
-
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 features
into existing products, which may result in restructuring and asset
impairment charges.
-
Intel operates in highly competitive industries and its operations
have high costs that are either fixed or difficult to reduce in the
short term.
-
The amount, timing and execution of Intel's stock buyback program
could be affected by changes in Intel's priorities for the use of
cash, such as operational spending, capital spending, acquisitions,
and because of changes to Intel's cash
flows and changes in tax laws.
-
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 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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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.
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Intel's results could be affected by the timing of closing of
acquisitions, divestitures and other significant transactions.
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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. 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.
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 Form 10-Q, Form 10-K 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.
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