|
 |
|
RISK FACTORS REGARDING
FORWARD-LOOKING STATEMENTS
This
statements in this webcast that refer to plans and
expectations for the second quarter and the future are
forward-looking statements that involve a number of
risks and uncertainties. These statements do not reflect
the potential impact of any mergers, acquisitions,
divestitures, investments or other similar transactions
that may be completed in the future. The information
presented is accurate only as of today’s date and will
not be updated. In addition to any factors discussed in
the presentation, the important factors that could cause
actual results to differ materially include the
following: Demand could be different from Intel's
expectations due to changes in business and economic
conditions, including conditions in the credit market
that could affect consumer confidence; 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. Intel’s results could be affected by the
timing of closing of acquisitions and divestitures.
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. Additionally, Intel is in the process of
transitioning to its next generation of products on 45
nm process technology, and there could be execution
issues associated with these changes, including product
defects and errata along with lower than anticipated
manufacturing yields. Revenue and the gross margin
percentage are affected by the timing of new 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; Intel’s ability to
respond quickly to technological developments and to
incorporate new features into its products; and the
availability of sufficient supply of components from
suppliers to meet demand. The gross margin percentage
could vary significantly from expectations based on
changes in revenue levels; product mix and pricing;
capacity utilization; variations in inventory valuation,
including variations related to the timing of qualifying
products for sale; excess or obsolete inventory;
manufacturing yields; changes in unit costs; impairments
of long-lived assets, including manufacturing,
assembly/test and intangible assets; and the timing and
execution of the manufacturing ramp and associated
costs, including start-up costs. Expenses, particularly
certain marketing and compensation expenses, vary
depending on the level of demand for Intel's products,
the level of revenue and profits, and impairments of
long-lived assets. Intel is in the midst of a structure
and efficiency program that is resulting in several
actions that could have an impact on expected expense
levels and gross margin. 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 fixed income and equity market
volatility; gains or losses realized on the sale or
exchange of securities; gains or losses from equity
method investments; impairment charges related to
marketable, non-marketable and other investments;
interest rates; cash balances; and changes in fair value
of derivative instruments. Intel's results could be
impacted by adverse economic, social, political and
physical/infrastructure conditions in the countries in
which 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.
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 and other issues, such
as the litigation and regulatory matters described in
Intel's SEC reports. Please refer to Intel’s most recent
Form 10-K and 10-Q filings for more information on the
risk factors that could cause actual results to differ
materially.
 |
|
|
|
