%PDF-1.5 1 0 obj <> endobj 3 0 obj <> endobj 4 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 31.60 Td (*PC Client Group and Data Center Group microprocessors and chipsets) Tj ET Q 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 683.5 m 426.5 683.5 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 683.5 m 561.5 683.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 738.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 728.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 718.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 708.17 Td (Intel Corporation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 698.17 Td (2200 Mission College Blvd. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 688.17 Td (Santa Clara, CA 95054-1549) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET BT /F2 14.00 Tf ET q 0 0 0 rg BT 151.55 628.80 Td (CFO Commentary on ) Tj ET Q BT /F2 14.00 Tf ET q 0 0 0 rg BT 285.70 628.80 Td (Second) Tj ET Q BT /F2 14.00 Tf ET q 0 0 0 rg BT 328.48 628.80 Td (-Quarter) Tj ET Q q 0 0 0 rg BT 381.87 628.80 Td ( ) Tj ET Q BT /F2 14.00 Tf ET q 0 0 0 rg BT 385.37 628.80 Td (2014) Tj ET Q BT /F2 14.00 Tf ET q 0 0 0 rg BT 413.37 628.80 Td ( Results) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 50 595.1220703125 m 100.666015625 595.1220703125 l s q 0 0 0 rg BT 50.00 597.00 Td (Summary) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 582.60 Td (The ) Tj ET Q q 0 0 0 rg BT 72.07 582.60 Td (second ) Tj ET Q q 0 0 0 rg BT 108.80 582.60 Td (quarter ) Tj ET Q q 0 0 0 rg BT 146.19 582.60 Td (came ) Tj ET Q q 0 0 0 rg BT 174.92 582.60 Td (in ) Tj ET Q q 0 0 0 rg BT 187.66 582.60 Td (above ) Tj ET Q q 0 0 0 rg BT 219.73 582.60 Td (the ) Tj ET Q q 0 0 0 rg BT 237.80 582.60 Td (expectations ) Tj ET Q q 0 0 0 rg BT 301.19 582.60 Td (we ) Tj ET Q q 0 0 0 rg BT 318.59 582.60 Td (provided ) Tj ET Q q 0 0 0 rg BT 364.66 582.60 Td (in ) Tj ET Q q 0 0 0 rg BT 377.40 582.60 Td (the ) Tj ET Q q 0 0 0 rg BT 394.72 582.60 Td (April ) Tj ET Q q 0 0 0 rg BT 423.46 582.60 Td (Earnings ) Tj ET Q q 0 0 0 rg BT 469.53 582.60 Td (call, ) Tj ET Q q 0 0 0 rg BT 493.26 582.60 Td (and ) Tj ET Q q 0 0 0 rg BT 514.00 582.60 Td (consistent ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 568.20 Td (with ) Tj ET Q q 0 0 0 rg BT 74.89 568.20 Td (the ) Tj ET Q q 0 0 0 rg BT 93.11 568.20 Td (revised ) Tj ET Q q 0 0 0 rg BT 131.32 568.20 Td (outlook ) Tj ET Q q 0 0 0 rg BT 171.55 568.20 Td (we ) Tj ET Q q 0 0 0 rg BT 189.10 568.20 Td (released ) Tj ET Q q 0 0 0 rg BT 231.96 568.20 Td (on ) Tj ET Q q 0 0 0 rg BT 247.52 568.20 Td (June ) Tj ET Q q 0 0 0 rg BT 273.07 568.20 Td (12. ) Tj ET Q q 0 0 0 rg BT 291.63 568.20 Td (It ) Tj ET Q q 0 0 0 rg BT 302.52 568.20 Td (was ) Tj ET Q q 0 0 0 rg BT 324.74 568.20 Td (a ) Tj ET Q q 0 0 0 rg BT 333.62 568.20 Td (good ) Tj ET Q q 0 0 0 rg BT 361.18 568.20 Td (quarter ) Tj ET Q q 0 0 0 rg BT 398.72 568.20 Td (representing ) Tj ET Q q 0 0 0 rg BT 461.58 568.20 Td (financial ) Tj ET Q q 0 0 0 rg BT 507.12 568.20 Td (growth ) Tj ET Q q 0 0 0 rg BT 544.67 568.20 Td (and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 553.80 Td (solid ) Tj ET Q q 0 0 0 rg BT 76.34 553.80 Td (momentum ) Tj ET Q q 0 0 0 rg BT 134.00 553.80 Td (as ) Tj ET Q q 0 0 0 rg BT 147.00 553.80 Td (we ) Tj ET Q q 0 0 0 rg BT 163.99 553.80 Td (approach ) Tj ET Q q 0 0 0 rg BT 210.96 553.80 Td (the ) Tj ET Q q 0 0 0 rg BT 228.62 553.80 Td (second ) Tj ET Q q 0 0 0 rg BT 264.95 553.80 Td (half ) Tj ET Q q 0 0 0 rg BT 286.60 553.80 Td (of ) Tj ET Q q 0 0 0 rg BT 299.60 553.80 Td (the ) Tj ET Q q 0 0 0 rg BT 317.26 553.80 Td (year) Tj ET Q q 0 0 0 rg BT 337.24 553.80 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 525.00 Td (Second-quarter revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 180.27 525.00 Td ($13.8B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 215.28 525.00 Td ( was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 239.94 525.00 Td (up 8%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 270.93 525.00 Td ( sequentially) Tj ET Q q 0 0 0 rg BT 331.14 525.00 Td (, above the average seasonal increase in the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 510.60 Td (second quarter and in line with our revised outlook on June 12. Gross mar) Tj ET Q q 0 0 0 rg BT 405.04 510.60 Td (gin of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 436.37 510.60 Td (64.5%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 467.37 510.60 Td ( was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 492.03 510.60 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 504.03 510.60 Td ( almost 5 ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 496.20 Td (points from the first quarter and 1.5 points above our original Q2 guidance. ) Tj ET Q q 0 0 0 rg BT 414.03 496.20 Td (The almost five point increase ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 481.80 Td (relative to the first quarter is primarily due to lower 14nm startup costs, higher platform* volumes, and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 467.40 Td (lower platform* unit costs. Net income for the second quarter was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 370.57 467.40 Td ($2.8B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 399.58 467.40 Td ( with earnings per share of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 530.20 467.40 Td ($0.55) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 557.20 467.40 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 438.60 Td (In the second quarter we repurchased $2.1B of stock. ) Tj ET Q q 0 0 0 rg BT 308.03 438.60 Td (W) Tj ET Q q 0 0 0 rg BT 318.39 438.60 Td (e have also announced an additional $20 billion of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 424.25 Td (authorizations for future stock repurchases. Our intent is to repurchase another $4B of stock in Q3 with ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 409.85 Td (additional repurchases planned for Q4. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 381.05 Td (Looking forward, we are forecasting revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 282.56 381.05 Td ($14.4B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 317.57 381.05 Td ( for the third quarter) Tj ET Q q 0 0 0 rg BT 414.38 381.05 Td (, up approximately 4 percent ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 366.65 Td (from the second quarter) Tj ET Q q 0 0 0 rg BT 163.81 366.65 Td (, this forecast is in line with the average seasonal increase for Q3 that we have ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 352.25 Td (seen over the last several years. ) Tj ET Q q 0 0 0 rg BT 204.05 352.25 Td (W) Tj ET Q q 0 0 0 rg BT 214.41 352.25 Td (e expect third-quarter gross mar) Tj ET Q q 0 0 0 rg BT 367.47 352.25 Td (gin to increase by ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 455.44 352.25 Td (1.5) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 470.44 352.25 Td ( points to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 518.11 352.25 Td (66%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 540.11 352.25 Td (, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 337.85 Td (driven by lower platform* unit costs and higher platform* volumes, partially of) Tj ET Q q 0 0 0 rg BT 431.70 337.85 Td (fset by lower platform* ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 323.45 Td (average selling prices. For the year) Tj ET Q q 0 0 0 rg BT 217.45 323.45 Td (, we expect revenue growth relative to last year of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 460.34 323.45 Td (approximately 5%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 548.65 323.45 Td (, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 309.05 Td (and our gross mar) Tj ET Q q 0 0 0 rg BT 136.10 309.05 Td (gin forecast is now ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 230.08 309.05 Td (63%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 252.07 309.05 Td ( versus the ) Tj ET Q q 0 0 0 rg BT 305.73 309.05 Td (April 15 Outlook of 61%. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 280.25 Td (The ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 71.66 280.25 Td (second) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 104.98 280.25 Td ( quarter ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 144.96 280.25 Td (2014) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 168.96 280.25 Td ( results when compared to the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 315.58 280.25 Td (second) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 348.90 280.25 Td ( quarter from a year ago were the following:) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 265.85 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 265.85 Td (Revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 143.98 265.85 Td ($13.8B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 178.98 265.85 Td ( was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 203.64 265.85 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 215.64 265.85 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 218.64 265.85 Td (8%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 234.64 265.85 Td (, from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 266.97 265.85 Td ($12.8B) Tj ET Q BT /F1 12.00 Tf ET BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 251.45 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 251.45 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 135.44 251.45 Td (gin of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 166.77 251.45 Td (64.5%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 197.77 251.45 Td ( was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 222.43 251.45 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 234.43 251.45 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 237.43 251.45 Td (6.2) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 252.43 251.45 Td ( points from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 314.09 251.45 Td (58.3%) Tj ET Q BT /F1 12.00 Tf ET BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 237.05 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 237.05 Td (Operating income of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 188.30 237.05 Td ($3.8B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 217.30 237.05 Td ( was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 241.96 237.05 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 253.96 237.05 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 256.96 237.05 Td (41%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 278.96 237.05 Td ( from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 308.29 237.05 Td ($2.7B) Tj ET Q BT /F1 12.00 Tf ET BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 222.65 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 222.65 Td (Net income of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 157.64 222.65 Td ($2.8B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 186.65 222.65 Td ( was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 211.31 222.65 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 223.31 222.65 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 226.31 222.65 Td (40%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 248.30 222.65 Td ( from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 277.63 222.65 Td ($2.0B) Tj ET Q BT /F1 12.00 Tf ET BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 208.25 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 208.25 Td (Earnings per share of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 191.29 208.25 Td (55 cents) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 230.95 208.25 Td ( was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 255.61 208.25 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 267.61 208.25 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 270.61 208.25 Td (41%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 292.61 208.25 Td ( from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 321.93 208.25 Td (39 cents) Tj ET Q BT /F1 12.00 Tf ET /GS0 gs q 85.69 0 0 59.00 429.00 687.02 cm /I1 Do Q endstream endobj 5 0 obj <> endobj 6 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 31.60 Td (*PC Client Group and Data Center Group microprocessors and chipsets) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 50 739.0220703125 m 86.673828125 739.0220703125 l s q 0 0 0 rg BT 50.00 740.90 Td (Second) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 86.673828125 739.0220703125 m 134.439453125 739.0220703125 l s q 0 0 0 rg BT 86.67 740.90 Td ( Quarter) Tj ET Q q 0 0 0 rg BT 131.44 740.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 134.439453125 739.0220703125 m 158.439453125 739.0220703125 l s q 0 0 0 rg BT 134.44 740.90 Td (2014) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 158.44 740.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (Revenue) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 697.70 Td (Revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 107.98 697.70 Td ($13.8B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 142.98 697.70 Td ( was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 167.64 697.70 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 179.64 697.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 182.64 697.70 Td (8%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 198.64 697.70 Td ( sequentially and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 282.95 697.70 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 294.95 697.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 297.95 697.70 Td (8%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 313.95 697.70 Td ( from a year ago. ) Tj ET Q q 0 0 0 rg BT 398.36 697.70 Td (T) Tj ET Q q 0 0 0 rg BT 404.85 697.70 Td (otal platform* volumes, across ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 683.30 Td (PC and Data Center) Tj ET Q q 0 0 0 rg BT 145.16 683.30 Td (, were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 177.48 683.30 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 189.48 683.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 192.48 683.30 Td (12%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 214.47 683.30 Td ( when compared to the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 326.77 683.30 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 346.10 683.30 Td ( quarter) Tj ET Q q 0 0 0 rg BT 382.41 683.30 Td (. ) Tj ET Q q 0 0 0 rg BT 388.20 683.30 Td (T) Tj ET Q q 0 0 0 rg BT 394.69 683.30 Td (otal platform* average selling ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 668.90 Td (prices were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 107.97 668.90 Td (down) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 134.63 668.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 137.63 668.90 Td (2%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 153.63 668.90 Td ( when compared to the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 265.92 668.90 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 285.25 668.90 Td ( quarter) Tj ET Q q 0 0 0 rg BT 321.57 668.90 Td (. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 642.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 642.50 Td (PC Client Group had revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 243.97 642.50 Td ($8.7B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 272.97 642.50 Td (, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 278.97 642.50 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 290.97 642.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 293.97 642.50 Td (6%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 309.97 642.50 Td ( year over year) Tj ET Q q 0 0 0 rg BT 380.93 642.50 Td (. PC Client Group platform volumes ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 628.10 Td (were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 112.31 628.10 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 124.31 628.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 127.31 628.10 Td (9%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 143.31 628.10 Td ( and platform average selling prices were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 344.22 628.10 Td (down) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 370.89 628.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 373.89 628.10 Td (4%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 389.88 628.10 Td ( from a year ago. On a year) Tj ET Q q 0 0 0 rg BT 520.91 628.10 Td (-on-year ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 613.70 Td (basis, desktop platform volumes were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 270.63 613.70 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 282.63 613.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 285.63 613.70 Td (8%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 301.63 613.70 Td ( and desktop platform average selling prices were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 542.87 613.70 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 554.87 613.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 599.30 Td (2%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 102.00 599.30 Td (. On a year) Tj ET Q q 0 0 0 rg BT 154.40 599.30 Td (-on-year basis, notebook platform volumes were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 390.00 599.30 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 402.00 599.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 405.00 599.30 Td (9%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 420.99 599.30 Td ( and notebook platform ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 584.90 Td (average selling prices were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 219.27 584.90 Td (down) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 245.93 584.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 248.93 584.90 Td (7%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 264.93 584.90 Td (. Relative to the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 343.91 584.90 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 363.24 584.90 Td ( quarter) Tj ET Q q 0 0 0 rg BT 399.73 584.90 Td (, PC Client Group revenue was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 570.50 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 98.00 570.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 101.00 570.50 Td (9%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 117.00 570.50 Td ( with platform volumes ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 232.31 570.50 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 244.31 570.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 247.31 570.50 Td (12%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 269.31 570.50 Td ( and platform average selling prices ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 443.91 570.50 Td (down) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 470.57 570.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 473.57 570.50 Td (3%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 489.57 570.50 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 556.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 556.10 Td (Data Center Group had revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 254.60 556.10 Td ($3.5B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 283.60 556.10 Td (, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 289.60 556.10 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 301.60 556.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 304.60 556.10 Td (19%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 326.60 556.10 Td ( on a year) Tj ET Q q 0 0 0 rg BT 373.33 556.10 Td (-on-year basis. Platform volumes were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 541.70 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 98.00 541.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 101.00 541.70 Td (9%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 117.00 541.70 Td ( and platform average selling prices were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 317.91 541.70 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 329.91 541.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 332.91 541.70 Td (1) Tj ET Q q 0 0 0 rg BT 338.46 541.70 Td (1%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 354.46 541.70 Td ( over this same horizon. Data Center ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 527.30 Td (Group revenue was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 182.30 527.30 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 194.30 527.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 197.30 527.30 Td (14%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 219.29 527.30 Td ( from the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 266.28 527.30 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 285.61 527.30 Td ( quarter with platform volumes ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 437.91 527.30 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 449.91 527.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 452.91 527.30 Td (12%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 474.90 527.30 Td ( and platform ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 512.90 Td (average selling prices ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 192.95 512.90 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 204.95 512.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 207.95 512.90 Td (3%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 223.95 512.90 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 498.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 498.50 Td (Internet of ) Tj ET Q q 0 0 0 rg BT 139.09 498.50 Td (Things Group had revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 283.38 498.50 Td ($539M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 318.05 498.50 Td (, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 324.05 498.50 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 336.05 498.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 339.05 498.50 Td (24%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 361.05 498.50 Td ( on a year) Tj ET Q q 0 0 0 rg BT 407.79 498.50 Td (-over) Tj ET Q q 0 0 0 rg BT 432.86 498.50 Td (-year basis, and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 510.83 498.50 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 522.83 498.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 525.83 498.50 Td (12%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 547.83 498.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 484.10 Td (from the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 129.99 484.10 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 149.32 484.10 Td ( quarter) Tj ET Q q 0 0 0 rg BT 185.63 484.10 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 469.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 469.70 Td (Mobile and Communications Group had revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 336.95 469.70 Td ($51M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 365.62 469.70 Td (, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 371.62 469.70 Td (down) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 398.28 469.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 401.28 469.70 Td (83%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 423.28 469.70 Td ( on a year) Tj ET Q q 0 0 0 rg BT 470.01 469.70 Td (-over) Tj ET Q q 0 0 0 rg BT 495.09 469.70 Td (-year basis, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 455.30 Td (and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 106.33 455.30 Td (down) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 132.99 455.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 135.99 455.30 Td (67%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 157.99 455.30 Td ( from the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 204.97 455.30 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 224.30 455.30 Td ( quarter) Tj ET Q q 0 0 0 rg BT 260.62 455.30 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 440.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 440.90 Td (The software and services operating segments had revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 384.22 440.90 Td ($548M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 418.89 440.90 Td (, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 424.89 440.90 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 436.89 440.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 439.89 440.90 Td (3%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 455.88 440.90 Td ( on a year) Tj ET Q q 0 0 0 rg BT 502.62 440.90 Td (-over) Tj ET Q q 0 0 0 rg BT 527.70 440.90 Td (-year ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 426.50 Td (basis, and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 136.33 426.50 Td (down) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 162.99 426.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 165.99 426.50 Td (1%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 181.99 426.50 Td ( from the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 228.97 426.50 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 248.30 426.50 Td ( quarter) Tj ET Q q 0 0 0 rg BT 284.62 426.50 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 412.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 412.10 Td (All other operating segments had revenue of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 302.26 412.10 Td ($517M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 336.93 412.10 Td (, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 342.93 412.10 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 354.93 412.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 357.93 412.10 Td (16%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 379.93 412.10 Td ( on a year) Tj ET Q q 0 0 0 rg BT 426.66 412.10 Td (-over) Tj ET Q q 0 0 0 rg BT 451.74 412.10 Td (-year basis, and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 529.71 412.10 Td (down) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 556.38 412.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 397.70 Td (5%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 102.00 397.70 Td ( from the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 148.98 397.70 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 168.31 397.70 Td ( quarter) Tj ET Q q 0 0 0 rg BT 204.63 397.70 Td (.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 368.90 Td (Gr) Tj ET Q q 0 0 0 rg BT 64.44 368.90 Td (oss Margin) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 354.50 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 354.50 Td (gin dollars were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 179.75 354.50 Td ($8.9B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 208.75 354.50 Td (, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 214.75 354.50 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 226.75 354.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 229.75 354.50 Td ($1.3B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 258.76 354.50 Td ( compared to the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 342.06 354.50 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 361.39 354.50 Td ( quarter) Tj ET Q q 0 0 0 rg BT 397.71 354.50 Td (. Gross mar) Tj ET Q q 0 0 0 rg BT 453.15 354.50 Td (gin of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 484.48 354.50 Td (64.5%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 515.47 354.50 Td ( was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 540.14 354.50 Td (up ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 340.10 Td (4.9 points) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 97.34 340.10 Td ( compared to the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 180.64 340.10 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 199.97 340.10 Td ( quarter) Tj ET Q q 0 0 0 rg BT 236.47 340.10 Td (, up 1.5 points from our ) Tj ET Q q 0 0 0 rg BT 352.47 340.10 Td (April Outlook, and in line with our Revised ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 325.70 Td (Outlook provided on June 12.) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 295.300390625 m 195.423828125 295.300390625 l s q 0 0 0 rg BT 50.00 296.90 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 296.90 Td (gin Reconciliation: ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 195.423828125 295.300390625 m 224.251953125 295.300390625 l s q 0 0 0 rg BT 195.42 296.90 Td (Q1'14) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 224.251953125 295.300390625 m 239.5859375 295.300390625 l s q 0 0 0 rg BT 224.25 296.90 Td ( to ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 239.5859375 295.300390625 m 268.4140625 295.300390625 l s q 0 0 0 rg BT 239.59 296.90 Td (Q2'14) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 268.4140625 295.300390625 m 275.41015625 295.300390625 l s q 0 0 0 rg BT 268.41 296.90 Td ( \() Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 275.41015625 295.300390625 m 306.40625 295.300390625 l s q 0 0 0 rg BT 275.41 296.90 Td (59.6%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 306.40625 295.300390625 m 321.740234375 295.300390625 l s q 0 0 0 rg BT 306.41 296.90 Td ( to ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 321.740234375 295.300390625 m 352.736328125 295.300390625 l s q 0 0 0 rg BT 321.74 296.90 Td (64.5%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 352.736328125 295.300390625 m 358.736328125 295.300390625 l s q 0 0 0 rg BT 352.74 296.90 Td (, ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 358.736328125 295.300390625 m 421.07421875 295.300390625 l s q 0 0 0 rg BT 358.74 296.90 Td (up 4.9 points) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 421.07421875 295.300390625 m 425.0703125 295.300390625 l s q 0 0 0 rg BT 421.07 296.90 Td (\)) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 282.50 Td ([note: point attributions are approximate] ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 268.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 268.10 Td (+ 2.5 points: ) Tj ET Q q 0 0 0 rg BT 158.00 268.10 Td (Lower other cost of sales \(primarily on 14nm factory start-up\)) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 253.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 253.70 Td (+ 2.0 points: ) Tj ET Q q 0 0 0 rg BT 158.00 253.70 Td (Higher platform* volumes) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 239.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 239.30 Td (+ 1.0 point: ) Tj ET Q q 0 0 0 rg BT 158.00 239.30 Td (Lower platform* unit costs) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 224.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 224.90 Td (+ 1.0 point: ) Tj ET Q q 0 0 0 rg BT 158.00 224.90 Td (Lower platform* inventory write-of) Tj ET Q q 0 0 0 rg BT 330.06 224.90 Td (fs \(pre-qualification products costs\) primarily ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 158.00 210.50 Td (on the qualification of 14nm products) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 196.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 196.10 Td (- 1.0 point: ) Tj ET Q q 0 0 0 rg BT 158.00 196.10 Td (T) Tj ET Q q 0 0 0 rg BT 164.49 196.10 Td (ablet impact) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 165.70039062499995 m 195.423828125 165.70039062499995 l s q 0 0 0 rg BT 50.00 167.30 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 167.30 Td (gin Reconciliation: ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 195.423828125 165.70039062499995 m 224.251953125 165.70039062499995 l s q 0 0 0 rg BT 195.42 167.30 Td (Q2'14) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 224.251953125 165.70039062499995 m 324.91015625 165.70039062499995 l s q 0 0 0 rg BT 224.25 167.30 Td ( Original Outlook to ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 324.91015625 165.70039062499995 m 353.73828125 165.70039062499995 l s q 0 0 0 rg BT 324.91 167.30 Td (Q2'14) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 353.73828125 165.70039062499995 m 360.734375 165.70039062499995 l s q 0 0 0 rg BT 353.74 167.30 Td ( \() Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 360.734375 165.70039062499995 m 382.73046875 165.70039062499995 l s q 0 0 0 rg BT 360.73 167.30 Td (63%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 382.73046875 165.70039062499995 m 482.486328125 165.70039062499995 l s q 0 0 0 rg BT 382.73 167.30 Td ( +/- couple points to ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 482.486328125 165.70039062499995 m 513.482421875 165.70039062499995 l s q 0 0 0 rg BT 482.49 167.30 Td (64.5%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 513.482421875 165.70039062499995 m 534.482421875 165.70039062499995 l s q 0 0 0 rg BT 513.48 167.30 Td (, up ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 534.482421875 165.70039062499995 m 549.482421875 165.70039062499995 l s q 0 0 0 rg BT 534.48 167.30 Td (1.5) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 549.48 167.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 151.30039062499998 m 83.333984375 151.30039062499998 l s q 0 0 0 rg BT 50.00 152.90 Td (points\)) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 138.50 Td ([note: point attributions are approximate]) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 124.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 124.10 Td (+ 1.0 point: ) Tj ET Q q 0 0 0 rg BT 158.00 124.10 Td (Higher platform* volumes) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 109.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 109.70 Td (+ 1.0 point: ) Tj ET Q q 0 0 0 rg BT 158.00 109.70 Td (Lower platform* unit costs) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 95.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 95.30 Td (- 0.5 point: ) Tj ET Q q 0 0 0 rg BT 158.00 95.30 Td (T) Tj ET Q q 0 0 0 rg BT 164.49 95.30 Td (ablet impact) Tj ET Q endstream endobj 7 0 obj <> endobj 8 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 31.60 Td (*PC Client Group and Data Center Group microprocessors and chipsets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 19.60 Td (^^ Cash and cash equivalents, short-term investments, andtrading assets) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 739.100390625 m 195.423828125 739.100390625 l s q 0 0 0 rg BT 50.00 740.70 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 740.70 Td (gin Reconciliation: ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 195.423828125 739.100390625 m 224.251953125 739.100390625 l s q 0 0 0 rg BT 195.42 740.70 Td (Q2'13) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 224.251953125 739.100390625 m 239.5859375 739.100390625 l s q 0 0 0 rg BT 224.25 740.70 Td ( to ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 239.5859375 739.100390625 m 268.4140625 739.100390625 l s q 0 0 0 rg BT 239.59 740.70 Td (Q2'14) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 268.4140625 739.100390625 m 275.41015625 739.100390625 l s q 0 0 0 rg BT 268.41 740.70 Td ( \() Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 275.41015625 739.100390625 m 306.40625 739.100390625 l s q 0 0 0 rg BT 275.41 740.70 Td (58.3%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 306.40625 739.100390625 m 321.740234375 739.100390625 l s q 0 0 0 rg BT 306.41 740.70 Td ( to ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 321.740234375 739.100390625 m 352.736328125 739.100390625 l s q 0 0 0 rg BT 321.74 740.70 Td (64.5%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 352.736328125 739.100390625 m 358.736328125 739.100390625 l s q 0 0 0 rg BT 352.74 740.70 Td (, ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 358.736328125 739.100390625 m 421.07421875 739.100390625 l s q 0 0 0 rg BT 358.74 740.70 Td (up 6.2 points) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 421.07421875 739.100390625 m 425.0703125 739.100390625 l s q 0 0 0 rg BT 421.07 740.70 Td (\)) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 726.30 Td (When comparing to the second quarter from a year ago, gross mar) Tj ET Q q 0 0 0 rg BT 367.67 726.30 Td (gin was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 407.66 726.30 Td (up 6.2 points) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 470.00 726.30 Td ( primarily due to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 711.90 Td (lower factory start-up costs primarily on 14nm, lower platform* unit costs primarily on 22nm, and higher ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 697.50 Td (platform* volume, partially of) Tj ET Q q 0 0 0 rg BT 195.08 697.50 Td (fset by the ramp of tablet volume.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 668.70 Td (Spending) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 654.30 Td (Spending for R&D and MG&A) Tj ET Q q 0 0 0 rg BT 201.33 654.30 Td ( was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 225.99 654.30 Td ($4.9B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 255.00 654.30 Td (, flat from the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 323.97 654.30 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 343.30 654.30 Td ( quarter and in line with the Revised Outlook ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 639.90 Td (provided on June 12. R&D and MG&A) Tj ET Q q 0 0 0 rg BT 239.66 639.90 Td ( as a percentage of revenue was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 394.57 639.90 Td (36%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 416.57 639.90 Td (, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 422.57 639.90 Td (down) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 449.23 639.90 Td ( from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 478.56 639.90 Td (38%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 500.56 639.90 Td ( in the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 533.55 639.90 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 552.88 639.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 625.50 Td (quarter) Tj ET Q q 0 0 0 rg BT 83.32 625.50 Td (. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 596.70 Td (Depreciation was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 136.63 596.70 Td ($1.9B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 165.63 596.70 Td (, in line with expectations.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 567.90 Td (Amortization of acquisition related intangibles was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 298.60 567.90 Td ($72M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 327.27 567.90 Td (, in line with expectations.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 539.10 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 539.10 Td ( Income Statement Items) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 524.70 Td (Gains and losses on equity investments and interest and other income was a net gain of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 470.57 524.70 Td ($78M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 499.24 524.70 Td ( compared to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 510.30 Td (a ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 58.33 510.30 Td ($160M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 93.00 510.30 Td ( net gain in the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 167.31 510.30 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 186.64 510.30 Td ( quarter and our Outlook of an approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 407.91 510.30 Td ($75M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 436.58 510.30 Td ( net gain. ) Tj ET Q q 0 0 0 rg BT 483.68 510.30 Td (The lower net ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 495.90 Td (gain relative to the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 142.63 495.90 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 161.96 495.90 Td ( quarter was driven primarily by the first quarter gain on sale of Intel Media which ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 481.50 Td (was partially of) Tj ET Q q 0 0 0 rg BT 124.43 481.50 Td (fset by dividends received in the second quarter as a result of our equity investment in ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 467.10 Td (ASML.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 438.30 Td (The provision for taxes in the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 194.63 438.30 Td (second) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 227.96 438.30 Td ( quarter was at a ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 309.58 438.30 Td (28.7%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 340.58 438.30 Td ( tax rate, slightly above our Revised Outlook ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 423.90 Td (provided on June 12 of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 163.65 423.90 Td (28%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 185.64 423.90 Td (.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 395.10 Td (Balance Sheet and Cash Flow Items) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 380.70 Td (On the balance sheet, total cash investments^^ ended the quarter at ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 373.81 380.70 Td ($17.3B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 408.82 380.70 Td (, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 414.82 380.70 Td (down) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 441.48 380.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 444.48 380.70 Td ($1.7B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 473.49 380.70 Td ( from the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 520.47 380.70 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 539.80 380.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 366.30 Td (quarter) Tj ET Q q 0 0 0 rg BT 83.32 366.30 Td (. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 89.32 366.30 Td ($1) Tj ET Q q 0 0 0 rg BT 100.87 366.30 Td (1.2B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 123.88 366.30 Td ( of the total ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 181.86 366.30 Td ($17.3B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 216.86 366.30 Td ( total cash investments^^ is held by non-U.S. subsidiaries. Cash flow ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 351.90 Td (from operations in the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 159.31 351.90 Td (second) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 192.63 351.90 Td ( quarter was approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 326.58 351.90 Td ($5.5B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 355.58 351.90 Td (. During the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 416.24 351.90 Td (second) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 449.56 351.90 Td ( quarter) Tj ET Q q 0 0 0 rg BT 486.06 351.90 Td (, we paid ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 337.50 Td (approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 122.31 337.50 Td ($1.1B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 151.31 337.50 Td ( in dividends, purchased ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 270.96 337.50 Td ($2.8B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 299.96 337.50 Td ( in capital assets and repurchased ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 462.56 337.50 Td ($2.1B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 491.57 337.50 Td ( in stock. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 323.10 Td (T) Tj ET Q q 0 0 0 rg BT 56.49 323.10 Td (otal inventories were ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 160.12 323.10 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 172.12 323.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 175.12 323.10 Td ($180M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 209.79 323.10 Td (. ) Tj ET Q q 0 0 0 rg BT 215.57 323.10 Td (W) Tj ET Q q 0 0 0 rg BT 225.94 323.10 Td (e expect our net inventory levels to increase as we ramp Broadwell in ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 308.70 Td (the back half of this year) Tj ET Q q 0 0 0 rg BT 168.29 308.70 Td (.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 279.90 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 279.90 Td ( Items) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 265.50 Td (The total number of employees was ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 224.62 265.50 Td (down) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 251.28 265.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 254.28 265.50 Td (1K) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 268.95 265.50 Td ( from the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 315.93 265.50 Td (first) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 335.26 265.50 Td ( quarter at ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 386.90 265.50 Td (105K) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 413.57 265.50 Td (. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 236.70 Td (Diluted shares outstanding was approximately flat to the prior quarter at ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 398.90 236.70 Td (5.1B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 421.91 236.70 Td ( shares outstanding. ) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 50 191.6220703125 m 92.333984375 191.6220703125 l s q 0 0 0 rg BT 50.00 193.50 Td (Q3 2014) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 92.333984375 191.6220703125 m 137.345703125 191.6220703125 l s q 0 0 0 rg BT 92.33 193.50 Td ( Outlook) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 179.10 Td (Intel's Business Outlook for the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 204.48 179.10 Td (third) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 227.15 179.10 Td ( quarter does not include the ef) Tj ET Q q 0 0 0 rg BT 375.54 179.10 Td (fect of any business combinations, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 164.70 Td (asset acquisitions, divestitures, or other investments that may be completed after ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 438.90 164.70 Td (July15) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 473.90 164.70 Td (. ) Tj ET Q q 0 0 0 rg BT 479.69 164.70 Td (The midpoint of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 150.30 Td (the forecast ranges will be referred to when making comparisons to specific periods. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 121.50 Td (Revenue) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 107.10 Td (Revenue is expected to be ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 178.29 107.10 Td ($14.4B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 213.29 107.10 Td (, plus or minus ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 287.63 107.10 Td ($500M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 322.30 107.10 Td ( in the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 355.29 107.10 Td (third) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 377.96 107.10 Td ( quarter) Tj ET Q q 0 0 0 rg BT 414.27 107.10 Td (. ) Tj ET Q q 0 0 0 rg BT 420.05 107.10 Td (The midpoint of this range is ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 92.70 Td (up slightly above 4% from the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 198.64 92.70 Td (second) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 231.96 92.70 Td ( quarter) Tj ET Q q 0 0 0 rg BT 268.46 92.70 Td (, in line with the average seasonal increase for the third ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 78.30 Td (quarter that we have seen over the last several years.) Tj ET Q endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 31.60 Td (*PC Client Group and Data Center Group microprocessors and chipsets) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 740.90 Td (Gr) Tj ET Q q 0 0 0 rg BT 64.44 740.90 Td (oss Margin) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 726.50 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 726.50 Td (gin in the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 147.77 726.50 Td (third) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 170.43 726.50 Td ( quarter is expected to be ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 293.71 726.50 Td (66%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 315.71 726.50 Td (, plus or minus a couple points, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 468.70 726.50 Td (up) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 480.70 726.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 483.70 726.50 Td (1.5) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 498.70 726.50 Td ( points from ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 67.66 712.10 Td (second) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 100.98 712.10 Td ( quarter) Tj ET Q q 0 0 0 rg BT 137.30 712.10 Td (.) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 681.700390625 m 195.423828125 681.700390625 l s q 0 0 0 rg BT 50.00 683.30 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 683.30 Td (gin Reconciliation: ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 195.423828125 681.700390625 m 224.251953125 681.700390625 l s q 0 0 0 rg BT 195.42 683.30 Td (Q2'14) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 224.251953125 681.700390625 m 239.5859375 681.700390625 l s q 0 0 0 rg BT 224.25 683.30 Td ( to ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 239.5859375 681.700390625 m 268.4140625 681.700390625 l s q 0 0 0 rg BT 239.59 683.30 Td (Q3'14) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 268.4140625 681.700390625 m 317.744140625 681.700390625 l s q 0 0 0 rg BT 268.41 683.30 Td ( Outlook \() Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 317.744140625 681.700390625 m 348.740234375 681.700390625 l s q 0 0 0 rg BT 317.74 683.30 Td (64.5%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 348.740234375 681.700390625 m 364.07421875 681.700390625 l s q 0 0 0 rg BT 348.74 683.30 Td ( to ) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 364.07421875 681.700390625 m 386.0703125 681.700390625 l s q 0 0 0 rg BT 364.07 683.30 Td (66%) Tj ET Q BT /F1 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 386.0703125 681.700390625 m 482.814453125 681.700390625 l s q 0 0 0 rg BT 386.07 683.30 Td ( +/- a couple points\)) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 668.90 Td ([note: point attributions are approximate] ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 654.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 654.50 Td (+ 1.5 points: ) Tj ET Q q 0 0 0 rg BT 158.00 654.50 Td (Lower platform* unit costs) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 640.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 640.10 Td (+ 0.5 point: ) Tj ET Q q 0 0 0 rg BT 158.00 640.10 Td (Higher platform* volume) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 625.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 625.70 Td ( - 0.5 point: ) Tj ET Q q 0 0 0 rg BT 158.00 625.70 Td (Lower platform* average selling prices) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 611.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 596.90 Td (Spending) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 582.50 Td (Spending for R&D and MG&A) Tj ET Q q 0 0 0 rg BT 201.33 582.50 Td ( in the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 234.32 582.50 Td (third) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 256.99 582.50 Td ( quarter is expected to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 452.58 582.50 Td ($4.9B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 481.58 582.50 Td (, flat to the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (second) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 83.32 568.10 Td ( quarter) Tj ET Q q 0 0 0 rg BT 119.64 568.10 Td (. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 539.30 Td (Depreciation is forecast to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 265.92 539.30 Td ($1.9B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 294.92 539.30 Td (, flat from the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 363.90 539.30 Td (second) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 397.22 539.30 Td ( quarter) Tj ET Q q 0 0 0 rg BT 433.54 539.30 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 510.50 Td (Restructuring char) Tj ET Q q 0 0 0 rg BT 138.75 510.50 Td (ges are forecast to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 315.34 510.50 Td ($20M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 344.01 510.50 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 481.70 Td (Amortization of acquisition-related intangibles is forecast to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 428.88 481.70 Td ($65M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 457.55 481.70 Td (.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 452.90 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 452.90 Td ( Income Statement Items) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 438.50 Td (Gains and losses from equity investments and interest and other income are expected to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 424.10 Td (zero) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 70.65 424.10 Td (, compared to a net ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 165.28 424.10 Td (gain) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 185.94 424.10 Td ( of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 201.93 424.10 Td ($78M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 230.60 424.10 Td ( in the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 263.60 424.10 Td (second) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 296.92 424.10 Td ( quarter) Tj ET Q q 0 0 0 rg BT 333.24 424.10 Td (.) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 50 379.0220703125 m 74 379.0220703125 l s q 0 0 0 rg BT 50.00 380.90 Td (2014) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 74 379.0220703125 m 119.01171875 379.0220703125 l s q 0 0 0 rg BT 74.00 380.90 Td ( Outlook) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 366.50 Td (The Outlook for full year ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 174.29 366.50 Td (2014) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 198.29 366.50 Td ( does not include the ef) Tj ET Q q 0 0 0 rg BT 309.71 366.50 Td (fect of any acquisitions, divestitures or similar ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 352.10 Td (transactions that may be completed after ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 247.26 352.10 Td (July15) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 282.26 352.10 Td (. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 323.30 Td (Revenue) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 308.90 Td (Revenue for the year is expected to grow ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 249.92 308.90 Td (approximately 5%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 338.23 308.90 Td ( relative to 2013, an increase from the ) Tj ET Q q 0 0 0 rg BT 522.49 308.90 Td (April ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 294.50 Td (outlook of approximately flat.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 265.70 Td (Gr) Tj ET Q q 0 0 0 rg BT 64.44 265.70 Td (oss Margin) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 251.30 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 251.30 Td (gin for the year is expected to be ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 259.38 251.30 Td (63%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 281.38 251.30 Td ( plus or minus a couple points, up versus our prior ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 236.90 Td (expectation in ) Tj ET Q q 0 0 0 rg BT 119.98 236.90 Td (April Outlook of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 203.64 236.90 Td (61%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 225.63 236.90 Td (. ) Tj ET Q q 0 0 0 rg BT 231.42 236.90 Td (This is driven primarily by lower platform* unit costs, higher ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 222.50 Td (platform* volumes, and partially of) Tj ET Q q 0 0 0 rg BT 220.07 222.50 Td (fset by lower platform* average selling prices.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 193.70 Td (Spending) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 179.30 Td (Spending for R&D and MG&A) Tj ET Q q 0 0 0 rg BT 201.33 179.30 Td ( for the year is now expected to be ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 369.60 179.30 Td ($19.3B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 404.60 179.30 Td ( plus or minus ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 475.94 179.30 Td ($200M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 510.61 179.30 Td (, higher ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 164.90 Td (than our prior expectation of $19.2B in the Revised Outlook on June 12, primarily as a result of increases ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 150.50 Td (in revenue- and profit-dependent spending and marketing expenses.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 121.70 Td (Amortization of acquisition-related intangibles is still expected to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 454.55 121.70 Td ($300M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 489.22 121.70 Td (.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 92.90 Td (Depreciation for the year is still forecast to be approximately ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 345.22 92.90 Td ($7.4B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 374.23 92.90 Td (.) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 5) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 740.90 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 740.90 Td ( Income Statement Items) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 726.50 Td (The tax rate for each of the remaining quarters of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 289.22 726.50 Td (2014) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 313.22 726.50 Td ( is still expected to be ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 420.53 726.50 Td (28%) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 442.53 726.50 Td (, in line with our ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (Revised Outlook on June 12.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 683.30 Td (Balance Sheet and Cash Flow Items) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 668.90 Td (Capital spending for ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 150.98 668.90 Td (2014) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 174.98 668.90 Td ( is expected to be ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 261.28 668.90 Td ($1) Tj ET Q q 0 0 0 rg BT 272.84 668.90 Td (1.0B) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 295.84 668.90 Td ( plus or minus ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 367.18 668.90 Td ($500M) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 401.85 668.90 Td (, unchanged from our prior ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 654.50 Td (expectations. ) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 1.14 w 0 i [] 0 d 1 J 1 j 3 M 50 609.4220703125 m 114.9921875 609.4220703125 l s q 0 0 0 rg BT 50.00 611.30 Td (Risk Factors) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 596.90 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 596.90 Td (The above statements and any others in this document that refer to plans and expectations for the ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 582.50 Td (third quarter) Tj ET Q q 0 0 0 rg BT 109.16 582.50 Td (, the year and the future are forward-looking statements that involve a number of risks and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (uncertainties. ) Tj ET Q q 0 0 0 rg BT 117.09 568.10 Td (W) Tj ET Q q 0 0 0 rg BT 127.46 568.10 Td (ords such as anticipates, expects, intends, plans, believes, seeks, estimates, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 553.70 Td (may) Tj ET Q q 0 0 0 rg BT 75.21 553.70 Td (, will, should and their variations identify forward-looking statements. Statements that refer to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 539.30 Td (or are based on projections, uncertain events or assumptions also identify forward-looking statements. ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 524.90 Td (Many factors could af) Tj ET Q q 0 0 0 rg BT 155.41 524.90 Td (fect Intel) Tj ET Q q 0 0 0 rg BT 201.72 524.90 Td (s actual results, and variances from Intel) Tj ET Q q 0 0 0 rg BT 398.64 524.90 Td (s current expectations regarding ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 510.50 Td (such factors could cause actual results to dif) Tj ET Q q 0 0 0 rg BT 261.38 510.50 Td (fer materially from those expressed in these forward-looking ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 496.10 Td (statements. Intel presently considers the following to be important factors that could cause actual results to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 481.70 Td (dif) Tj ET Q q 0 0 0 rg BT 63.11 481.70 Td (fer materially from the company) Tj ET Q q 0 0 0 rg BT 222.38 481.70 Td (s expectations.) Tj ET Q BT /F1 12.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 467.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 467.30 Td (Demand for Intel's products is highly variable and, in recent years, Intel has experienced declining ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 452.90 Td (orders in the traditional PC market segment. Demand could be dif) Tj ET Q q 0 0 0 rg BT 402.04 452.90 Td (ferent from Intel's expectations ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 438.50 Td (due to factors including changes in business and economic conditions; consumer confidence or ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 424.10 Td (income levels; customer acceptance of Intel) Tj ET Q q 0 0 0 rg BT 299.57 424.10 Td (s and competitors) Tj ET Q q 0 0 0 rg BT 387.32 424.10 Td ( products; competitive and pricing ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 409.70 Td (pressures, including actions taken by competitors; supply constraints and other disruptions ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 395.30 Td (af) Tj ET Q q 0 0 0 rg BT 95.11 395.30 Td (fecting customers; changes in customer order patterns including order cancellations; and changes ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 380.90 Td (in the level of inventory at customers.) Tj ET Q BT /F1 12.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 366.50 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 366.50 Td (Intel operates in highly competitive industries and its operations have high costs that are either ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 352.10 Td (fixed or dif) Tj ET Q q 0 0 0 rg BT 139.77 352.10 Td (ficult to reduce in the short term.) Tj ET Q BT /F1 12.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 337.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 337.70 Td (Intel's gross mar) Tj ET Q q 0 0 0 rg BT 164.60 337.70 Td (gin percentage could vary significantly from expectations based on capacity ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 323.30 Td (utilization; variations in inventory valuation, including variations related to the timing of ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 308.90 Td (qualifying products for sale; changes in revenue levels; segment product mix; the timing and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 294.50 Td (execution of the manufacturing ramp and associated costs; excess or obsolete inventory; changes ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 280.10 Td (in unit costs; defects or disruptions in the supply of materials or resources; and product ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 265.70 Td (manufacturing quality/yields. ) Tj ET Q q 0 0 0 rg BT 230.08 265.70 Td (V) Tj ET Q q 0 0 0 rg BT 237.42 265.70 Td (ariations in gross mar) Tj ET Q q 0 0 0 rg BT 340.85 265.70 Td (gin may also be caused by the timing of Intel ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 251.30 Td (product introductions and related expenses, including marketing expenses, and Intel's ability to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 236.90 Td (respond quickly to technological developments and to introduce new products or incorporate new ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 222.50 Td (features into existing products, which may result in restructuring and asset impairment char) Tj ET Q q 0 0 0 rg BT 524.66 222.50 Td (ges.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 543.66 222.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 208.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 208.10 Td (The tax rate expectation is based on current tax law and current expected income. ) Tj ET Q q 0 0 0 rg BT 479.94 208.10 Td (The tax rate may ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 193.70 Td (be af) Tj ET Q q 0 0 0 rg BT 109.43 193.70 Td (fected by the jurisdictions in which profits are determined to be earned and taxed; changes in ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 179.30 Td (the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 164.90 Td (with various tax authorities, including payment of interest and penalties; and the ability to realize ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 150.50 Td (deferred tax assets.) Tj ET Q BT /F1 12.00 Tf ET BT /F1 12.00 Tf ET q 0 0 0 rg BT 68.00 136.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 136.10 Td (The amount, timing and other execution of Intel's stock buyback program could be af) Tj ET Q q 0 0 0 rg BT 495.16 136.10 Td (fected by ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 121.70 Td (changes in Intel's priorities for the use of cash for other purposes, such as operational spending, ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 107.30 Td (capital spending, acquisitions, and because of changes in cash flows and changes in tax laws.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 532.87 107.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 92.90 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 92.90 Td (Gains or losses from equity securities and interest and other could vary from expectations ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 78.50 Td (depending on gains or losses on the sale, exchange, change in the fair value or impairments of debt ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 64.10 Td (and equity investments; interest rates; cash balances; and changes in fair value of derivative ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 49.70 Td (instruments. ) Tj ET Q BT /F1 12.00 Tf ET endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 740.70 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 740.70 Td (Intel's results could be af) Tj ET Q q 0 0 0 rg BT 205.24 740.70 Td (fected by adverse economic, social, political and physical/infrastructure ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 726.30 Td (conditions in countries where Intel, its customers or its suppliers operate, including military ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 711.90 Td (conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 697.50 Td (fluctuations in currency exchange rates.) Tj ET Q BT /F1 12.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 683.10 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 683.10 Td (Intel) Tj ET Q q 0 0 0 rg BT 111.32 683.10 Td (s results could be af) Tj ET Q q 0 0 0 rg BT 206.42 683.10 Td (fected by the timing of closing of acquisitions, divestitures and other ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 668.70 Td (significant transactions.) Tj ET Q BT /F1 12.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 654.30 Td ( ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 654.30 Td (Intel's results could be af) Tj ET Q q 0 0 0 rg BT 205.24 654.30 Td (fected by adverse ef) Tj ET Q q 0 0 0 rg BT 301.30 654.30 Td (fects associated with product defects and errata ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 639.90 Td (\(deviations from published specifications\), and by litigation or regulatory matters involving ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 625.50 Td (intellectual property) Tj ET Q q 0 0 0 rg BT 182.18 625.50 Td (, stockholder) Tj ET Q q 0 0 0 rg BT 243.69 625.50 Td (, consumer) Tj ET Q q 0 0 0 rg BT 295.86 625.50 Td (, antitrust, disclosure and other issues. ) Tj ET Q q 0 0 0 rg BT 480.83 625.50 Td (An unfavorable ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 611.10 Td (ruling could include monetary damages or an injunction prohibiting Intel from manufacturing or ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 596.70 Td (selling one or more products, precluding particular business practices, impacting Intel) Tj ET Q q 0 0 0 rg BT 501.21 596.70 Td (s ability to ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 582.30 Td (design its products, or requiring other remedies such as compulsory licensing of intellectual ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 86.00 567.90 Td (property) Tj ET Q q 0 0 0 rg BT 125.87 567.90 Td (.) Tj ET Q BT /F1 12.00 Tf ET BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 539.10 Td (A) Tj ET Q q 0 0 0 rg BT 58.00 539.10 Td ( detailed discussion of these and other factors that could af) Tj ET Q q 0 0 0 rg BT 339.03 539.10 Td (fect Intel) Tj ET Q q 0 0 0 rg BT 385.34 539.10 Td (s results is included in Intel) Tj ET Q q 0 0 0 rg BT 520.32 539.10 Td (s SEC ) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 50.00 524.70 Td (filings, including the company) Tj ET Q q 0 0 0 rg BT 199.98 524.70 Td (s most recent reports on Form 10-K and Form 10-Q.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 451.27 524.70 Td ( ) Tj ET Q endstream endobj 15 0 obj <> /View <>>>>> endobj 16 0 obj <> /View <>>>>> endobj 17 0 obj <> endobj 18 0 obj <> stream xy\E7~n{{w'd'52 HaGPPA!"" b-&h,+TLy?:uk?uΩoH""?W~.Xv3&rm 2\jMgwm'CڴzlycǏ\ rBjx\DsV@{twocmC{Iwl11z:1m!t-\q3D.:yz'Wɨp[_F=>E"ǢӦ/|K&_~=!wn-az3¦h$7,ؑ2Oo_eSFLlk}Fg[F>|;