By Don Clark
SANTA CLARA, Calif.-- Intel Corp. projected more growth next
year, as an improving personal computer market and newer bets pay
off for the big chip maker.
The company, which reported 8% revenue growth in the third
quarter, said revenue would grow in 2015 by percentages in the "mid
single digits."
Intel, which released several projections at an annual meeting
with analysts here Thursday, predicted that its closely watched
gross profit margin would contract somewhat. The company had
projected the figure at about 64% in the fourth quarter; it put the
figure Thursday for all of 2015 at 62%, plus or minus two
percentage points.
The company put total spending for 2015 at about $20 billion,
with spending as a percentage of revenue down. It put capital
spending at $10.5 billion.
Intel also said it would boost its dividend by six cents a share
on an annual basis, bringing the total payout to 96 cents a
share.
The company's stock jumped on the projection. Shares recently
traded at $35.38, up 3%.
Intel's projection was issued following presentations by
executives including Andy Bryant, Intel's chairman, and Brian
Krzanich, its chief executive. Both vowed to reduce the steep
operating losses recently posted by a unit that produces chips for
mobile devices. In the fourth quarter, that group posted a loss of
$1 billion on revenue of just $1 million.
Mr. Bryant said the red ink was viewed as a necessary outcome of
Intel being late to providing chips for tablet computers. Mr.
Krzanich has vowed to put Intel chips in more than 40 million
tablets in 2014, a goal that forced the company to give costly
subsidies to hardware makers.
"This is the price you pay for sitting on the sidelines for a
number of years and then fighting your way back into a market," Mr.
Bryant said. "We will improve this. We will get back in."
Write to Don Clark at don.clark@wsj.com
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