Intel Announces Increase in Quarterly Cash Dividend, 2015 Business Outlook at Annual Investor Meeting
November 20 2014 - 11:29AM
Business Wire
At Intel 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
- Revenue: Growth in the mid-single
digits.
- Gross margin percentage: 62 percent,
plus or minus two points.
- 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.
- Capital spending: Approximately $10.5
billion, plus or minus $500 million.
- 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 company’s expectations.
- 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.
- 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.
- 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.
- 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.
- Intel’s results could be affected by
the timing of closing of acquisitions, divestitures and other
significant transactions.
- 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 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.
Intel CorporationCara Walker, 503-696-0831Media
Relationscara.walker@intel.comorTrey Campbell, 503-696-0431Investor
Relationstrey.s.campbell@intel.com
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