Intel Announces Increase in Quarterly Cash Dividend, 2016 Business Outlook at Annual Investor Meeting
November 19 2015 - 12:28PM
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 $1.04 per-share on an annual
basis, an eight-cent increase, beginning with the dividend that
will be declared in the first quarter of 2016. Intel also provided
the 2016 Business Outlook.
“Our financials show that Intel’s transformation is underway,
and we’re forecasting growth for 2016,” said Stacy Smith, Intel
CFO. “The 2016 dividend increase reflects confidence in the
strategy and Intel’s ongoing commitment to create value and return
cash to shareholders.”
At today’s investor meeting, Intel CEO Brian Krzanich addressed
Intel’s strategy to utilize the company’s core assets to move into
profitable, complementary market segments. He described Intel’s
Client Computing business as a strong foundation, which delivers
healthy profits and critical intellectual property to the rest of
Intel. The Data Center, Internet of Things and Memory businesses
are expected to be growth engines for the company.
Full-year 2016 Business
Outlook
Intel’s Business Outlook reflects the impact of a 53 week fiscal
2016.
- Revenue: Growth in the mid-single
digits.
- Gross margin percentage: 62 percent,
plus or minus a couple points
- R&D plus MG&A spending:
Spending as a percent of revenue is expected to be down half a
point.
- Capital spending: $10 billion, plus or
minus $500 million (includes approximately $1.5 billion for
Memory)
- Dividend: $1.04 per-share on an annual
basis, an eight-cent increase year-over-year, beginning with the
dividend that will be declared in the first quarter of 2016.
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 above statements and any others in
this release that refer to future plans and expectations
are forward-looking statements that involve a number of risks and
uncertainties. Words such as "anticipates," "expects,"
"intends," "goals," "plans," "believes," "seeks," "estimates,"
"continues," "may," "will," "should," and variations of such words
and similar expressions are intended to identify such
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 expectations due to factors
including changes in business and economic conditions; consumer
confidence or income levels; the introduction, availability and
market acceptance of Intel's products, products used together with
Intel products 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 products
or incorporate new features into existing products, which may
result in restructuring and asset impairment charges.
- 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. Results may also be
affected by the formal or informal imposition by countries of new
or revised export and/or import and doing-business regulations,
which could be changed without prior notice.
- 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 repurchase program could be affected by changes in
Intel's priorities for the use of cash, such as operational
spending, capital spending, acquisitions, and as a result of
changes to Intel's cash flows or 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 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
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.
- Product defects or errata (deviations
from published specifications) may adversely impact our expenses,
revenues and reputation.
- Intel's results could be affected 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.
- Intel's results may be affected by the
timing of closing of acquisitions, divestitures and other
significant transactions. In addition, risks associated with our
pending acquisition of Altera are described in the “Forward Looking
Statements” paragraph of Intel’s press release dated June 1, 2015,
which risk factors are incorporated by reference herein.
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 reports on Forms 10-K and 10-Q
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.
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IntelCara Walker, 503-696-0831Media
Relationscara.walker@intel.comBhargavi Wadhwa, 408-765-6469Investor
Relationsbhargavi.wadhwa@intel.com
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