herb will,
Updated 2011 First Quarter and Full Year Outlook
Separately, Intel (INTC:$21.455,0$-0.005,0-0.02%) recently announced that it had completed the acquisition of the Infineon Technologies AG Wireless Solutions business, which will now operate as the Intel Mobile Communications group. The company also expects to complete the acquisition of McAfee (MFE:$47.90,00$0.0300,0.06%) by the end of the first quarter.
The effects of the chipset issue and these transactions are incorporated into the company's revised outlook. The company now expects first-quarter revenue to be $11.7 billion, plus or minus $400 million, compared to the previous expectation of $11.5 billion, plus or minus $400 million. Gross margin percentage is now expected to be 61 percent, plus or minus a couple percentage points, compared to the previous expectation of 64 percent, plus or minus a couple percentage points. Spending (R&D plus MG&A) is now expected to be approximately $3.6 billion, compared to the previous expectation of approximately $3.4 billion.
The full-year revenue growth percentage is now expected to be in the mid-to high teens, compared to the company's prior expectation of approximately 10 percent. Full-year gross margin is now expected to be 63 percent, plus or minus a few percentage points, compared to the previous expectation of 65 percent, plus or minus a few percentage points. Spending (R&D plus MG&A) is now expected to be $15.7 billion, plus or minus $200 million, compared to the company's previous expectation of $13.9 billion, plus or minus $200 million. Research and development (R&D) spending is now expected to be approximately $8.2 billion, compared to the previous forecast of $7.3 billion.
All other expectations for the first-quarter and full-year remain unchanged. With the exception of McAfee (MFE:$47.90,00$0.0300,0.06%) , the outlook for the first quarter and full year do not include the effect of any acquisitions, divestitures or similar transactions that may be completed after Jan. 31. The acquisition of McAfee (MFE:$47.90,00$0.0300,0.06%) is subject to customary closing conditions.
Indeed, there was a slew of DJ headlines coming across a few moments ago. Apparently they will take a charge for the failure but increase the expected revenues for the next quarter. Some good news actually, considering the initial headline of a chip flaw.
IMHO
