-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KN16ngZ9GvK9H9ayzstZlVQkGwsTj0jgxW2L5b8Jo3dIQ4/zWnQaW7vAt+4o48ZK PiOu5iNMunKPVSlsPx6cmw== 0000050863-99-000063.txt : 19990715 0000050863-99-000063.hdr.sgml : 19990715 ACCESSION NUMBER: 0000050863-99-000063 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990713 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990714 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTEL CORP CENTRAL INDEX KEY: 0000050863 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 941672743 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-06217 FILM NUMBER: 99664525 BUSINESS ADDRESS: STREET 1: 2200 MISSION COLLEGE BLVD CITY: SANTA CLARA STATE: CA ZIP: 95052 BUSINESS PHONE: 4087658080 MAIL ADDRESS: STREET 1: 2200 MISSION COLLEGE BLVD STREET 2: RN6-27 CITY: SANTA CLARA STATE: CA ZIP: 95052-8119 8-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report: July 13, 1999 (Date of earliest event reported) INTEL CORPORATION (Exact name of registrant as specified in its charter) Delaware 0-6217 94-1672743 ---------- --------- -------------- (State of (Commission (IRS Employer incorporation) File Number) Identification No.) 2200 Mission College Blvd., Santa Clara, California 95052-8119 --------------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) (408) 765-8080 -------------- (Registrant's telephone number, including area code) 1 Item 5. OTHER EVENTS 5.1 Attached hereto as Exhibit 99.1 and incorporated by reference herein is financial information for Intel Corporation for the quarter ended June 26, 1999 and forward-looking statements relating to 1999, the third quarter of 1999 and the second half of 1999, as presented in a press release of July 13, 1999. Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits 99.1 Financial information for Intel Corporation for the quarter ended June 26, 1999 and forward-looking statements relating to 1999, the third quarter of 1999 and the second half of 1999. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. INTEL CORPORATION (Registrant) Date: July 13, 1999 By: /s/ ANDY D. BRYANT ------------------ Andy D. Bryant Senior Vice President, Chief Financial Officer and Principal Accounting Officer EX-99.1 2 EXHIBIT 99.1 3 EXHIBIT 99.1 INTEL SECOND QUARTER REVENUE $6.7 BILLION REVENUE UP 14% AND EPS UP 55% FROM SECOND QUARTER 1998 SANTA CLARA, Calif., July 13, 1999 - Intel Corporation announced second quarter revenue of $6.7 billion and earnings of $1.7 billion or $0.51 per share. Second quarter revenue was up 14 percent from second quarter 1998 revenue of $5.9 billion. Second quarter revenue was down 5 percent from first quarter 1999 revenue of $7.1 billion. Net income in the second quarter was $1.7 billion, up 49 percent from second quarter 1998 net income of $1.2 billion. Net income in the second quarter was down 13 percent from first quarter 1999 net income of $2.0 billion. Second quarter earnings per share of $0.51 increased 55 percent from $0.33 in the second 4 quarter of 1998. Earnings per share in the second quarter declined 11 percent from $0.57 in the first quarter of 1999. "We are pleased with our accomplishments this quarter. We made progress positioning Intel for the evolving Internet economy. The Pentium - -Registered Trademark- III processor, a high performance multimedia processor for the most demanding Internet applications, is on track to be our fastest ramping processor ever," said Dr. Craig R. Barrett, president and chief executive officer. "In addition, we regained market segment share in the value PC segment with the Intel-Registered Trademark- Celeron-TM- processor. As expected, second quarter revenue reflected a seasonal slowdown, and we look forward to a strong second half." During the quarter, the company paid its quarterly cash dividend of $0.03 per share, an increase from $0.02 paid in the first quarter. The dividend was paid on June 1, 1999, to stockholders of record on May 7, 1999. Intel has paid a regular quarterly cash dividend for over six years. During the quarter, the company repurchased a total of 25 million shares of common stock, at a cost of $1.5 billion, under an ongoing program. Since the program began in 1990, the company has repurchased 634.6 million shares at a total cost of $16.4 billion. On July 12, 1999, Intel acquired Dialogic Corporation for $44 per share in an all-cash tender offer valued at approximately $780 million. BUSINESS OUTLOOK ---------------- THE FOLLOWING STATEMENTS ARE BASED ON CURRENT EXPECTATIONS. THESE STATEMENTS ARE FORWARD-LOOKING, AND ACTUAL RESULTS MAY DIFFER MATERIALLY. NOTE: THESE STATEMENTS DO NOT INCLUDE THE IMPACT OF THE ACQUISITIONS OF DIALOGIC CORPORATION OR LEVEL ONE COMMUNICATIONS OR THE POTENTIAL IMPACT OF ANY OTHER MERGERS OR ACQUISITIONS THAT MAY BE COMPLETED AFTER JUNE 26, 1999. ** The company expects revenue for the third quarter of 1999 to be up slightly from second quarter revenue of $6.7 billion. The company expects a strong second half. 5 ** Gross margin percentage in the third quarter of 1999 is expected to be up slightly from 59 percent in the second quarter. Intel's gross margin expectation for the full year 1999 is now 60 percent, plus or minus a few points, up from prior guidance of 57 percent, plus or minus a few points. This change in guidance reflects the positive impact of the company's ongoing focus on cost improvements and manufacturing efficiencies. In the short term, Intel's gross margin percentage varies primarily with revenue levels and product mix as well as changes in unit costs. ** Expenses (R&D plus MG&A) in the third quarter of 1999 are expected to be approximately 4 to 6 percent higher than second quarter expenses of $1.7 billion, primarily due to higher spending on R&D projects. Expenses are dependent in part on the level of revenue. ** R&D spending is expected to be approximately $3.0 billion for the full year 1999. ** The company expects interest and other income for the third quarter of 1999 to be approximately $275 million, depending on interest rates, cash balances, the company's ability to realize expected gains, and assuming no unanticipated items. ** The tax rate for 1999 is expected to be 33.0 percent. ** Capital spending for 1999 is expected to be approximately $3.0 billion. ** Depreciation and amortization is expected to be approximately $3.3 billion for 1999. Depreciation and amortization for the third quarter of 1999 is expected to be approximately $810 million. The above statements contained in this outlook are forward-looking statements that involve a number of risks and uncertainties. In addition to factors discussed above, among other factors that could cause actual results to differ materially are the following: business and economic conditions such as the recent global financial difficulties, and growth in the computing industry in various geographic regions; changes in customer order patterns, including changes in customer and channel inventory levels and changes due to year 2000 issues; changes in the mixes of microprocessor types and speeds, purchased components and other products; competitive factors, such as rival chip architectures and manufacturing technologies, competing 6 software-compatible microprocessors and acceptance of new products in specific market segments; pricing pressures; development and timing of introduction of compelling software applications; insufficient, excess or obsolete inventory and variations in inventory valuation; continued success in technological advances, including development and implementation of new processes and strategic products for specific market segments; execution of the manufacturing ramp, including the transitions to the Pentium III processor and to the 0.18 micron process technology; excess or shortage of manufacturing capacity; the ability to grow new businesses and successfully integrate and operate any acquired businesses; unanticipated costs or other adverse effects associated with processors and other products containing errata (deviations from published specifications); impact on the company's business due to internal systems or systems of suppliers, infrastructure providers and other third parties adversely affected by year 2000 problems; claims due to year 2000 issues allegedly related to the company's products or year 2000 remediation efforts; litigation involving antitrust, intellectual property, consumer and other issues; and other risk factors listed from time to time in the company's SEC reports, including but not limited to the report on Form 10-Q for the quarter ended March 27, 1999 (Part I, Item 2, Outlook section). 7 INTEL CORPORATION CONSOLIDATED SUMMARY FINANCIAL STATEMENTS (In millions, except per share amounts)
INCOME Three Months Ended Six Months Ended ----------------------- -------------------- June 26, June 27, June 26, June 27, 1999 1998 1999 1998 -------- -------- -------- -------- NET REVENUE $ 6,746 $ 5,927 $ 13,849 $ 11,928 -------- -------- --------- --------- Cost of sales 2,771 3,027 5,683 5,776 Research and development 731 623 1,394 1,218 Marketing, general and administrative 924 671 1,815 1,382 Purchased in-process research and development - - - 165 -------- -------- -------- -------- Operating costs and expenses 4,426 4,321 8,892 8,541 -------- -------- -------- -------- OPERATING INCOME 2,320 1,606 4,957 3,387 Interest and other 290 144 637 344 -------- -------- -------- -------- INCOME BEFORE TAXES 2,610 1,750 5,594 3,731 Income taxes 861 578 1,846 1,286 -------- -------- -------- -------- NET INCOME $ 1,749 $ 1,172 $ 3,748 $ 2,445 ======== ======== ======== ======== BASIC EARNINGS PER SHARE $ 0.53 $ 0.35 $ 1.13 $ 0.73 ======== ======== ======== ======== DILUTED EARNINGS PER SHARE $ 0.51 $ 0.33 $ 1.08 $ 0.69 ======== ======== ======== ======== COMMON SHARES OUTSTANDING 3,310 3,382 3,317 3,332 COMMON SHARES ASSUMING DILUTION 3,446 3,537 3,462 3,543 - ------------------------------------------------------------------------------------------- BALANCE SHEET At At At June 26, Mar. 27, Dec. 26, 1999 1999 1998 -------- -------- -------- CURRENT ASSETS Cash and short-term investments $ 10,609 $ 10,589 $ 7,626 Accounts receivable 3,265 3,319 3,527 Inventories: Raw materials 222 232 206 Work in process 947 797 795 Finished goods 594 679 581 -------- -------- -------- 1,763 1,708 1,582 -------- -------- -------- Deferred tax assets and other 836 833 740 -------- -------- -------- Total current assets 16,473 16,449 13,475 Property, plant and equipment, net 11,412 11,492 11,609 Long-term investments 3,453 5,867 5,365 Other assets 1,463 1,285 1,022 -------- -------- -------- TOTAL ASSETS $ 32,801 $ 33,093 $ 31,471 ======== ======== ======== CURRENT LIABILITIES Short-term debt $ 135 $ 182 $ 159 Accounts payable and accrued liabilities 3,840 3,921 4,081 Deferred income on shipments to distributors 499 690 606 Income taxes payable 643 1,423 958 -------- -------- -------- Total current liabilities 5,117 6,216 5,804 LONG-TERM DEBT 666 699 702 DEFERRED TAX LIABILITIES 1,546 1,452 1,387 PUT WARRANTS - - 201 STOCKHOLDERS' EQUITY Common Stock and capital in excess of par value 4,819 5,025 4,822 Retained earnings 20,653 19,701 18,555 -------- -------- -------- Total stockholders' equity 25,472 24,726 23,377 -------- -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 32,801 $ 33,093 $ 31,471 ======== ======== ========
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