Intel 1998 Annual Report Download - page 66

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issues; competitive factors such as rival chip architectures and manufacturing technologies, competing software-compatible microprocessors
and acceptance of new products in specific market segments; pricing pressures; development and timing of the introduction of compelling
software applications; execution of the manufacturing ramp, including the transition to the 0.18-micron process technology; 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; and litigation involving anti-trust, intellectual
property, consumer and other issues.
Intel believes that it has the product offerings, facilities, personnel, and competitive and financial resources for continued business success, but
future revenues, costs, margins and profits are all influenced by a number of factors, including those discussed above, all of which are
inherently difficult to forecast.
FINANCIAL INFORMATION BY QUARTER (UNAUDITED)
(A) NET INCOME FOR THE FIRST QUARTER OF 1998 REFLECTED A $165 MILLION CHARGE FOR PURCHASED IN-PROCESS
RESEARCH AND DEVELOPMENT RELATED TO THE ACQUISITION OF CHIPS AND TECHNOLOGIES, INC.
(B) AS OF THE SECOND QUARTER OF 1998, THE COMPANY ADOPTED A NEW DIVIDEND DECLARATION SCHEDULE WHICH
RESULTS IN THE BOARD OF DIRECTORS CONSIDERING TWO DIVIDEND DECLARATIONS IN THE FIRST AND THIRD
QUARTERS OF THE YEAR AND NO DECLARATIONS IN THE SECOND AND FOURTH QUARTERS. A DIVIDEND WAS PAID IN
EACH QUARTER OF 1998. INTEL PLANS TO CONTINUE ITS DIVIDEND PROGRAM. HOWEVER, DIVIDENDS ARE DEPENDENT
ON FUTURE EARNINGS, CAPITAL REQUIREMENTS AND FINANCIAL CONDITION.
(C) INTEL'S COMMON STOCK (SYMBOL INTC) TRADES ON THE NASDAQ STOCK MARKET* AND IS QUOTED IN THE WALL
STREET JOURNAL AND OTHER NEWSPAPERS. INTEL'S 1998 STEP-UP WARRANTS TRADED ON THE NASDAQ STOCK
MARKET PRIOR TO THEIR MARCH 1998 EXPIRATION. INTEL'S COMMON STOCK ALSO TRADES ON THE SWISS EXCHANGE.
AT DECEMBER 26, 1998, THERE WERE APPROXIMATELY 203,000 REGISTERED HOLDERS OF COMMON STOCK. ALL STOCK
AND WARRANT PRICES ARE CLOSING PRICES PER THE NASDAQ STOCK MARKET AS ADJUSTED FOR STOCK SPLITS.
(IN MILLIONS-EXCEPT
PER SHARE AMOUNTS)
1998 FOR QUARTER ENDED DECEMBER 26 SEPTEMBER 26 JUNE 27 MARCH 28
------------------------------------------------------------------------------------------------------------------------
Net revenues $7,614 $6,731 $5,927 $6,001
Cost of sales $3,176 $3,192 $3,027 $2,749
Net income (A) $2,064 $1,559 $1,172 $1,273
Basic earnings per share $ .62 $ .46 $ .35 $ .39
Diluted earnings per share $ .59 $ .44 $ .33 $ .36
Dividends per share (B)
Declared $ - $ .035 $ - $ .015
Paid $ .020 $ .015 $ .015 $ .015
Market price range
Common Stock (C)
High $62.50 $45.72 $42.41 $47.09
Low $39.22 $35.59 $32.97 $35.13
Market price range
Step-Up Warrants (C)
High $ - $ - $ - $36.56
Low $ - $ - $ - $24.73
(IN MILLIONS-EXCEPT
PER SHARE AMOUNTS)
1997 FOR QUARTER ENDED DECEMBER 27 SEPTEMBER 27 JUNE 28 MARCH 29
------------------------------------------------------------------------------------------------------------------------
Net revenues $6,507 $6,155 $5,960 $6,448
Cost of sales $2,691 $2,604 $2,343 $2,307
Net income $1,743 $1,574 $1,645 $1,983
Basic earnings per share $ .53 $ .48 $ .50 $ .61
Diluted earnings per share $ .49 $ .44 $ .46 $ .55
Dividends per share (B)
Declared $ .0150 $ .0150 $.0150 $.0125
Paid $ .0150 $ .0150 $.0125 $.0125
Market price range
Common Stock (C)
High $47.69 $50.25 $42.33 $41.19
Low $34.56 $34.77 $32.63 $32.59
Market price range
Step-Up Warrants (C)
High $37.34 $39.94 $32.08 $31.31
Low $24.19 $24.78 $22.66 $22.53