%PDF-1.5 1 0 obj <> endobj 3 0 obj <> endobj 4 0 obj <> stream BT /F1 9.00 Tf ET 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 /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 52.00 738.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 728.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 718.17 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 708.33 Td (Intel Corporation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 698.17 Td (2200 Mission College Blvd.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 688.17 Td (Santa Clara, CA) Tj ET Q q 0 0 0 rg BT 116.71 688.17 Td ( 95054-1549) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET BT /F3 14.00 Tf ET q 0 0 0 rg BT 151.55 628.80 Td (CFO Commentary on Second-Quarter) Tj ET Q q 0 0 0 rg BT 381.87 628.80 Td ( 2013 Results) Tj ET Q BT /F3 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 /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 582.60 Td (Second quarter revenue of $12.8B was up 2% sequentially) Tj ET Q q 0 0 0 rg BT 330.14 582.60 Td (, in line with the average seasonal increase in ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 568.20 Td (the second quarter and in line with our expectations. ) Tj ET Q q 0 0 0 rg BT 303.71 568.20 Td (The worldwide PC supply chain saw a small increase ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 553.80 Td (in inventory levels in the second quarter as customers began building inventory of Haswell based PCs. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 539.40 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 539.40 Td (gin of 58% was consistent with our guidance and up 2 points from the first quarter as a result of ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 525.00 Td (the qualification for sale of additional Haswell products and higher volume. ) Tj ET Q q 0 0 0 rg BT 415.90 525.00 Td (As expected, the reduction in ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 510.60 Td (excess capacity char) Tj ET Q q 0 0 0 rg BT 147.72 510.60 Td (ges in the second quarter was mostly of) Tj ET Q q 0 0 0 rg BT 337.13 510.60 Td (fset by an increase in 14nm factory start-up ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 496.20 Td (costs. Operating income for the second quarter was $2.7B with earnings per share of $0.39. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 467.40 Td (\(All forecasts refer to the midpoint of the forecast ranges\). ) Tj ET Q q 0 0 0 rg BT 332.67 467.40 Td (W) Tj ET Q q 0 0 0 rg BT 343.04 467.40 Td (e are forecasting revenue of $13.5B for the ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 453.00 Td (third quarter) Tj ET Q q 0 0 0 rg BT 109.16 453.00 Td (, up 5% from the second quarter) Tj ET Q q 0 0 0 rg BT 262.96 453.00 Td (, which is at the lower end of the historical seasonal range. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 438.60 Td (W) Tj ET Q q 0 0 0 rg BT 60.37 438.60 Td (e expect our customers to continue to manage inventories to very lean levels. ) Tj ET Q q 0 0 0 rg BT 432.69 438.60 Td (W) Tj ET Q q 0 0 0 rg BT 443.06 438.60 Td (e expect third quarter ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 424.25 Td (gross mar) Tj ET Q q 0 0 0 rg BT 96.78 424.25 Td (gin to increase by 3 points to 61% as we qualify our Baytrail product line for sale, increase our ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 409.85 Td (volume, and reduce our factory start-up costs. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 381.05 Td (W) Tj ET Q q 0 0 0 rg BT 60.37 381.05 Td (e are forecasting the overall PC market segment for 2013 to be weaker than we expected at the ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 366.65 Td (beginning of the year) Tj ET Q q 0 0 0 rg BT 151.64 366.65 Td (. Our expectations are now that revenue will be approximately flat to last year) Tj ET Q q 0 0 0 rg BT 527.84 366.65 Td (. Our ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 352.25 Td (gross mar) Tj ET Q q 0 0 0 rg BT 96.78 352.25 Td (gin forecast for the year is now 59% versus the prior forecast of 60 percent. ) Tj ET Q q 0 0 0 rg BT 461.32 352.25 Td (Additionally we ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 337.85 Td (have reduced our forecast for capital spending by $1.0B to $1) Tj ET Q q 0 0 0 rg BT 345.79 337.85 Td (1.0B. Lastly) Tj ET Q q 0 0 0 rg BT 407.01 337.85 Td (, as a result of spending ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 323.45 Td (reductions across the company we are lowering our spending forecast for the year by $200M to $18.7B.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 294.65 Td (The second quarter 2013 results when compared to the second quarter from a year ago were the following:) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 280.25 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 280.25 Td (Revenue of $12.8B was down 5%, from $13.5B) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 265.85 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 265.85 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 135.44 265.85 Td (gin of 58.3% was down 5.1 points from 63.4%) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 251.45 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 251.45 Td (Operating income of $2.7B was down 29% from $3.8B) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 237.05 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 237.05 Td (Net income of $2.0B was down 29% from $2.8B) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 222.65 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 222.65 Td (Earnings per share of $0.39 was down 28% from $0.54) Tj ET Q /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 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 2) Tj ET Q BT /F2 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 /F3 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 158.439453125 739.0220703125 l s q 0 0 0 rg BT 50.00 740.90 Td (Second Quarter) Tj ET Q q 0 0 0 rg BT 131.44 740.90 Td ( 2013) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (Revenue) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 697.70 Td (Revenue of $12.8B was up 2% sequentially and down 5% from a year ago. PC and Data Center platform* ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 683.30 Td (volumes were up 5% when compared to the first quarter) Tj ET Q q 0 0 0 rg BT 318.92 683.30 Td (. Platform* average selling prices were down 2% ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 668.90 Td (when compared to the first quarter) Tj ET Q q 0 0 0 rg BT 214.94 668.90 Td (. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 640.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 640.10 Td (The PC Client Group had revenue of $8.1B, up 1% from the first quarter with platform volumes ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 625.70 Td (up 5% and platform average selling prices down 3%. ) Tj ET Q q 0 0 0 rg BT 342.81 625.70 Td (Y) Tj ET Q q 0 0 0 rg BT 350.28 625.70 Td (ear over year) Tj ET Q q 0 0 0 rg BT 412.41 625.70 Td (, PC Client Group revenue was ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 611.30 Td (down 7% with platform volume down 5% and platform average selling prices flat. On a year on ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 596.90 Td (year basis, desktop platform volume was down 3% and desktop platform average selling prices ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 582.50 Td (were up 6%. On a year on year basis, notebook platform volume was down 7% and notebook ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 568.10 Td (platform average selling prices were down 4%. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 553.70 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 553.70 Td (The Data Center Group had revenue of $2.7B, up 6% from the first quarter with platform volumes ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 539.30 Td (up 6% and platform average selling prices down 1%. ) Tj ET Q q 0 0 0 rg BT 342.81 539.30 Td (Y) Tj ET Q q 0 0 0 rg BT 350.28 539.30 Td (ear over year) Tj ET Q q 0 0 0 rg BT 412.41 539.30 Td (, Data Center Group revenue ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 524.90 Td (was flat with platform volume up 1% and platform average selling prices were down 1%.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 510.50 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 510.50 Td (The other Intel architecture group had revenue of $0.9B, down 4% from the first quarter) Tj ET Q q 0 0 0 rg BT 508.52 510.50 Td (. ) Tj ET Q q 0 0 0 rg BT 514.07 510.50 Td (Y) Tj ET Q q 0 0 0 rg BT 521.54 510.50 Td (ear over ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 496.10 Td (year) Tj ET Q q 0 0 0 rg BT 106.17 496.10 Td (, the other Intel architecture group's revenue was down 15%. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 481.70 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 481.70 Td (The Software and Services Group had revenue of $610M, up 4% from the first quarter) Tj ET Q q 0 0 0 rg BT 500.21 481.70 Td (. ) Tj ET Q q 0 0 0 rg BT 505.77 481.70 Td (Y) Tj ET Q q 0 0 0 rg BT 513.23 481.70 Td (ear over ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 467.30 Td (year) Tj ET Q q 0 0 0 rg BT 106.17 467.30 Td (, the Software and Services Group revenue was up 4%. ) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 438.50 Td (Gr) Tj ET Q q 0 0 0 rg BT 64.44 438.50 Td (oss Margin) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 424.10 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 424.10 Td (gin dollars were $7.5B, up $0.4B compared to the first quarter) Tj ET Q q 0 0 0 rg BT 397.71 424.10 Td (. Gross mar) Tj ET Q q 0 0 0 rg BT 456.15 424.10 Td (gin of 58.3% was 2.1 ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 409.70 Td (points higher than the first quarter and up 0.3 point when compared to the midpoint of the Outlook ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 395.30 Td (provided on ) Tj ET Q q 0 0 0 rg BT 109.99 395.30 Td (April 16th.) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 364.900390625 m 425.0703125 364.900390625 l s q 0 0 0 rg BT 50.00 366.50 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 366.50 Td (gin Reconciliation: Q1'13 to Q2'13 \(56.2% to 58.3%, up 2.1 points\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 352.10 Td ([note: point attributions are approximate] ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 337.70 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 337.70 Td (+ 2.0 points: ) Tj ET Q q 0 0 0 rg BT 158.00 337.70 Td (Lower excess capacity char) Tj ET Q q 0 0 0 rg BT 290.04 337.70 Td (ges) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 323.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 323.30 Td (+ 1.0 point: ) Tj ET Q q 0 0 0 rg BT 158.00 323.30 Td (Lower platform* inventory write-of) Tj ET Q q 0 0 0 rg BT 330.06 323.30 Td (fs \(primarily lower pre-qualification product ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 308.90 Td ( ) Tj ET Q q 0 0 0 rg BT 86.00 308.90 Td ( ) Tj ET Q q 0 0 0 rg BT 122.00 308.90 Td ( ) Tj ET Q q 0 0 0 rg BT 158.00 308.90 Td (costs and higher sell-through of previously non-qualified units\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 294.50 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 294.50 Td (+ 0.5 point: ) Tj ET Q q 0 0 0 rg BT 158.00 294.50 Td (Higher platform* volume) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 280.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 280.10 Td (+ 0.5 point: ) Tj ET Q q 0 0 0 rg BT 158.00 280.10 Td (Miscellaneous) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 265.70 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 265.70 Td (- 2.0 points: ) Tj ET Q q 0 0 0 rg BT 158.00 265.70 Td (Other Cost of Sales \(primarily higher 14nm factory start-up costs\)) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 235.30039062499998 m 541.15625 235.30039062499998 l s q 0 0 0 rg BT 50.00 236.90 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 236.90 Td (gin Reconciliation: Q2'13 Outlook to Q2'13 \(58% +/- couple points to 58.3%, up 0.3 point\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 222.50 Td ([note: point attributions are approximate]) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 208.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 208.10 Td (- 1.0 point: ) Tj ET Q q 0 0 0 rg BT 158.00 208.10 Td (Higher platform* inventory write-of) Tj ET Q q 0 0 0 rg BT 332.06 208.10 Td (fs \(primarily pre-qualification product costs\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 193.70 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 193.70 Td (+ 0.5 point: ) Tj ET Q q 0 0 0 rg BT 158.00 193.70 Td (Lower platform* unit costs) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 179.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 179.30 Td (+ 0.5 point: ) Tj ET Q q 0 0 0 rg BT 158.00 179.30 Td (Miscellaneous) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 148.900390625 m 439.736328125 148.900390625 l s q 0 0 0 rg BT 50.00 150.50 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 150.50 Td (gin Reconciliation: Q2'12 to Q2'13 \(63.4% to 58.3%, down 5.1 points\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 136.10 Td (When comparing to the second quarter from a year ago gross mar) Tj ET Q q 0 0 0 rg BT 364.67 136.10 Td (gin was down 5.1 points primarily due to ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 121.70 Td (higher other costs of sales \(primarily factory start-up costs\) and higher platform* pre-qualification product ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 107.30 Td (costs, of) Tj ET Q q 0 0 0 rg BT 89.78 107.30 Td (fset partially by lower platform* unit costs.) Tj ET Q BT /F2 12.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 50.00 92.90 Td ( ) Tj ET Q endstream endobj 7 0 obj <> endobj 8 0 obj <> stream BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 31.60 Td (^^ Cash and cash equivalents, short-term investments, and marketable debt instruments included intrading assets) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 740.90 Td (Spending) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 726.50 Td (Spending for R&D and MG&A) Tj ET Q q 0 0 0 rg BT 201.33 726.50 Td ( was $4.7B, up ~$200M from the first quarter and in line with the Outlook ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (provided in ) Tj ET Q q 0 0 0 rg BT 107.33 712.10 Td (April. ) Tj ET Q q 0 0 0 rg BT 138.44 712.10 Td (The increase from the first quarter is driven primarily by an increase in marketing ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 697.70 Td (spending associated with the launch of Haswell, as well as annual salary increases. R&D and MG&A) Tj ET Q q 0 0 0 rg BT 536.21 697.70 Td ( as a ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 683.30 Td (percentage of revenue was 37%, up from the first quarter) Tj ET Q q 0 0 0 rg BT 323.22 683.30 Td (. Depreciation was $1.7B, in line with ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 668.90 Td (expectations. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 640.10 Td (Amortization of acquisition related intangibles was $70M, in line with expectations.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 611.30 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 611.30 Td ( Income Statement Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 596.90 Td (Gains and losses on equity investments and interest and other income was a net loss of $26M compared to ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 582.50 Td (a $76M net loss in the first quarter and our Outlook of approximately zero. ) Tj ET Q q 0 0 0 rg BT 412.03 582.50 Td (The lower net loss relative to ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (the first quarter was driven primarily by dividends received as a result of our equity investment in ) Tj ET Q q 0 0 0 rg BT 521.54 568.10 Td (ASML.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 539.30 Td (The provision for taxes in the second quarter was at a 25.7% tax rate, down from our previous ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 524.90 Td (expectations of 27%.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 496.10 Td (Balance Sheet and Cash Flow Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 481.70 Td (On the balance sheet, total cash investments^^ ended the quarter at $17.4B, up $0.3B from the first ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 467.30 Td (quarter) Tj ET Q q 0 0 0 rg BT 83.32 467.30 Td (. $10.3B of the total $17.4B total cash investments^^ is held by non-U.S. subsidiaries. Cash flow ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 452.90 Td (from operations in the second quarter was approximately $4.7B. During the second quarter) Tj ET Q q 0 0 0 rg BT 486.06 452.90 Td (, we paid ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 438.50 Td (approximately $1.1B in dividends, purchased $2.7B in capital assets and repurchased $0.6B in stock. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 424.10 Td (T) Tj ET Q q 0 0 0 rg BT 56.49 424.10 Td (otal inventories were up $184M.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 395.30 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 395.30 Td ( Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 380.90 Td (The total number of employees was up approximately 1K from the first quarter at 106K. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 352.10 Td (Diluted shares outstanding increased by 26M shares from the first quarter and decreased by 93M shares ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 337.70 Td (from the second quarter a year ago. ) Tj ET Q endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 4) Tj ET Q BT /F2 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 /F3 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 137.345703125 739.0220703125 l s q 0 0 0 rg BT 50.00 740.90 Td (Q3 2013 Outlook) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 726.50 Td (Intel's Business Outlook for the third quarter does not include the ef) Tj ET Q q 0 0 0 rg BT 375.54 726.50 Td (fect of any business combinations, ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (asset acquisitions, divestitures, or other investments that may be completed after July 17th. ) Tj ET Q q 0 0 0 rg BT 489.02 712.10 Td (The midpoint ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 697.70 Td (of the forecast ranges will be referred to when making comparisons to specific periods. ) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 668.90 Td (Revenue) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 654.50 Td (Revenue is expected to be $13.5B, plus or minus $500M in the third quarter) Tj ET Q q 0 0 0 rg BT 414.27 654.50 Td (. ) Tj ET Q q 0 0 0 rg BT 420.05 654.50 Td (The midpoint of this range is ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 640.10 Td (up 5% from the second quarter) Tj ET Q q 0 0 0 rg BT 197.62 640.10 Td (.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 611.30 Td (Gr) Tj ET Q q 0 0 0 rg BT 64.44 611.30 Td (oss Margin) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 596.90 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 596.90 Td (gin in the third quarter is expected to be 61%, plus or minus a couple points, up 2.7 points from ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 582.50 Td (the second quarter) Tj ET Q q 0 0 0 rg BT 137.30 582.50 Td (.) Tj ET Q BT /F2 12.00 Tf ET 0 0 0 RG /GS0 gs 0.59 w 0 i [] 0 d 1 J 1 j 3 M 50 552.100390625 m 482.814453125 552.100390625 l s q 0 0 0 rg BT 50.00 553.70 Td (Gross Mar) Tj ET Q q 0 0 0 rg BT 100.78 553.70 Td (gin Reconciliation: Q2'13 to Q3'13 Outlook \(58.3% to 61% +/- a couple points\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 539.30 Td ([note: point attributions are approximate] ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 524.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 524.90 Td (+ 2.0 points: ) Tj ET Q q 0 0 0 rg BT 158.00 524.90 Td (Lower platform* inventory write-of) Tj ET Q q 0 0 0 rg BT 330.06 524.90 Td (fs \(lower pre-qualification product costs and ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 510.50 Td ( higher sell-through of previously non-qualified units\)) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 496.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 496.10 Td (+ 1.0 point: ) Tj ET Q q 0 0 0 rg BT 158.00 496.10 Td (Higher platform* volume) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 481.70 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 481.70 Td (+ 0.5 point: ) Tj ET Q q 0 0 0 rg BT 158.00 481.70 Td (Lower factory start-up costs) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 467.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 467.30 Td (- 0.5 point: ) Tj ET Q q 0 0 0 rg BT 158.00 467.30 Td (Lower platform* average selling prices) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 452.90 Td ( ) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 438.50 Td (Spending) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 424.10 Td (Spending for R&D and MG&A) Tj ET Q q 0 0 0 rg BT 201.33 424.10 Td ( in the third quarter is expected to be approximately $4.8B, up ~$100M ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 409.70 Td (from the second quarter) Tj ET Q q 0 0 0 rg BT 163.63 409.70 Td (. ) Tj ET Q q 0 0 0 rg BT 172.41 409.70 Td (W) Tj ET Q q 0 0 0 rg BT 182.77 409.70 Td (e expect the spending on process engineers reclassified from cost of sales to ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 395.30 Td (R&D, as well as an increase in profit dependent spending to be mostly of) Tj ET Q q 0 0 0 rg BT 401.04 395.30 Td (fset by a variety of spending ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 380.90 Td (reductions across the company) Tj ET Q q 0 0 0 rg BT 196.84 380.90 Td (.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 352.10 Td (Depreciation is forecasted to be approximately $1.7B, flat from the second quarter) Tj ET Q q 0 0 0 rg BT 444.86 352.10 Td (.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 323.30 Td (Amortization of acquisition-related intangibles is forecasted to be approximately $70M.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 294.50 Td (Other) Tj ET Q q 0 0 0 rg BT 80.44 294.50 Td ( Income Statement Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (Gains and losses from equity investments and interest and other income are expected to be a net gain of ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 265.70 Td (approximately $400M, compared to a net loss of $26M in the second quarter) Tj ET Q q 0 0 0 rg BT 417.58 265.70 Td (. ) Tj ET Q q 0 0 0 rg BT 423.37 265.70 Td (The expected increase ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 251.30 Td (relative to the second quarter is driven by a gain on the sale of our equity investment in Clearwire.) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 5) Tj ET Q BT /F3 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 119.01171875 739.0220703125 l s q 0 0 0 rg BT 50.00 740.90 Td (2013 Outlook) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 726.50 Td (The Outlook for full year 2013 does not include the ef) Tj ET Q q 0 0 0 rg BT 309.71 726.50 Td (fect of any acquisitions, divestitures or similar ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (transactions that may be completed after July 17th. ) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 683.30 Td (Revenue) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 668.90 Td (Revenue for the year is expected to be approximately flat from a year ago vs. prior expectations to grow in ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 654.50 Td (the low single digits. ) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 625.70 Td (Gr) Tj ET Q q 0 0 0 rg BT 64.44 625.70 Td (oss Margin) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 611.30 Td (Gross mar) Tj ET Q q 0 0 0 rg BT 99.44 611.30 Td (gin for the year is expected to be 59% plus or minus a couple points, down versus our prior ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 596.90 Td (expectation of 60%.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (Spending) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 553.70 Td (Spending for R&D and MG&A) Tj ET Q q 0 0 0 rg BT 201.33 553.70 Td ( for the year is now expected to be $18.7B plus or minus $200M, down ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 539.30 Td ($200M from prior expectations.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 510.50 Td (Amortization of acquisition-related intangibles is still expected to be approximately $300M.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 481.70 Td (Depreciation for the year is still forecasted to be approximately $6.8B plus or minus $100M.) Tj ET Q BT /F3 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 /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 438.50 Td (The tax rate for each of the remaining quarters of 2013 is expected to be 26%.) Tj ET Q BT /F3 12.00 Tf ET q 0 0 0 rg BT 50.00 409.70 Td (Balance Sheet and Cash Flow Items) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 395.30 Td (Capital spending for 2013 is expected to be $1) Tj ET Q q 0 0 0 rg BT 272.84 395.30 Td (1.0B plus or minus $500M, down $1.0B from prior ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 380.90 Td (expectations. ) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 6) Tj ET Q BT /F3 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 114.9921875 739.0220703125 l s q 0 0 0 rg BT 50.00 740.90 Td (Risk Factors) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 726.50 Td (The above statements and any others in this document that refer to plans and expectations for the third ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (quarter) Tj ET Q q 0 0 0 rg BT 83.50 712.10 Td (, the year and the future are forward-looking statements that involve a number of risks and ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 697.70 Td (uncertainties. ) Tj ET Q q 0 0 0 rg BT 117.09 697.70 Td (W) Tj ET Q q 0 0 0 rg BT 127.46 697.70 Td (ords such as anticipates, expects, intends, plans, believes, seeks, estimates, ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 683.30 Td (may) Tj ET Q q 0 0 0 rg BT 75.21 683.30 Td (, will, should and their variations identify forward-looking statements. Statements that refer to ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 668.90 Td (or are based on projections, uncertain events or assumptions also identify forward-looking statements. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 654.50 Td (Many factors could af) Tj ET Q q 0 0 0 rg BT 155.41 654.50 Td (fect Intel's actual results, and variances from Intel's current expectations regarding ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 640.10 Td (such factors could cause actual results to dif) Tj ET Q q 0 0 0 rg BT 261.38 640.10 Td (fer materially from those expressed in these forward-looking ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 625.70 Td (statements. Intel presently considers the following to be the important factors that could cause actual ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 611.30 Td (results to dif) Tj ET Q q 0 0 0 rg BT 109.78 611.30 Td (fer materially from the company's expectations. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 596.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 596.90 Td (Demand could be dif) Tj ET Q q 0 0 0 rg BT 186.75 596.90 Td (ferent from Intel's expectations due to factors including changes in business ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 582.50 Td (and economic conditions; customer acceptance of Intel's and competitors' products; supply ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 568.10 Td (constraints and other disruptions af) Tj ET Q q 0 0 0 rg BT 254.42 568.10 Td (fecting customers; changes in customer order patterns including ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 553.70 Td (order cancellations; and changes in the level of inventory at customers. Uncertainty in global ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 539.30 Td (economic and financial conditions poses a risk that consumers and businesses may defer purchases ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 524.90 Td (in response to negative financial events, which could negatively af) Tj ET Q q 0 0 0 rg BT 405.01 524.90 Td (fect product demand and other ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 510.50 Td (related matters. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 496.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 496.10 Td (Intel operates in intensely competitive industries that are characterized by a high percentage of ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 481.70 Td (costs that are fixed or dif) Tj ET Q q 0 0 0 rg BT 205.41 481.70 Td (ficult to reduce in the short term and product demand that is highly ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 467.30 Td (variable and dif) Tj ET Q q 0 0 0 rg BT 161.08 467.30 Td (ficult to forecast. Revenue and the gross mar) Tj ET Q q 0 0 0 rg BT 375.46 467.30 Td (gin percentage are af) Tj ET Q q 0 0 0 rg BT 475.51 467.30 Td (fected by the ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 452.90 Td (timing of Intel product introductions and the demand for and market acceptance of Intel's ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 438.50 Td (products; actions taken by Intel's competitors, including product of) Tj ET Q q 0 0 0 rg BT 406.88 438.50 Td (ferings and introductions, ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 424.10 Td (marketing programs and pricing pressures and Intel's response to such actions; and Intel's ability to ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 409.70 Td (respond quickly to technological developments and to incorporate new features into its products. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 395.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 395.30 Td (The gross mar) Tj ET Q q 0 0 0 rg BT 154.43 395.30 Td (gin percentage could vary significantly from expectations based on capacity ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 380.90 Td (utilization; variations in inventory valuation, including variations related to the timing of ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 366.50 Td (qualifying products for sale; changes in revenue levels; segment product mix; the timing and ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 352.10 Td (execution of the manufacturing ramp and associated costs; start-up costs; excess or obsolete ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 337.70 Td (inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 323.30 Td (product manufacturing quality/yields; and impairments of long-lived assets, including ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 308.90 Td (manufacturing, assembly/test and intangible assets. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 294.50 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 294.50 Td (The tax rate expectation is based on current tax law and current expected income. ) Tj ET Q q 0 0 0 rg BT 479.94 294.50 Td (The tax rate may ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 280.10 Td (be af) Tj ET Q q 0 0 0 rg BT 109.43 280.10 Td (fected by the jurisdictions in which profits are determined to be earned and taxed; changes in ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 265.70 Td (the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 251.30 Td (with various tax authorities, including payment of interest and penalties; and the ability to realize ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 236.90 Td (deferred tax assets. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 222.50 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 222.50 Td (Gains or losses from equity securities and interest and other could vary from expectations ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 208.10 Td (depending on gains or losses on the sale, exchange, change in the fair value or impairments of debt ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 193.70 Td (and equity investments; interest rates; cash balances; and changes in fair value of derivative ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 179.30 Td (instruments. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 164.90 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 164.90 Td (Intel's results could be af) Tj ET Q q 0 0 0 rg BT 205.24 164.90 Td (fected by adverse economic, social, political and physical/infrastructure ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 150.50 Td (conditions in countries where Intel, its customers or its suppliers operate, including military ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 136.10 Td (conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 121.70 Td (fluctuations in currency exchange rates. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 107.30 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 107.30 Td (Expenses, particularly certain marketing and compensation expenses, as well as restructuring and ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 92.90 Td (asset impairment char) Tj ET Q q 0 0 0 rg BT 191.08 92.90 Td (ges, vary depending on the level of demand for Intel's products and the level ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 78.50 Td (of revenue and profits. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 64.10 Td ( ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 64.10 Td (Intel's results could be af) Tj ET Q q 0 0 0 rg BT 205.24 64.10 Td (fected by the timing of closing of acquisitions and divestitures. ) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 535.05 772.60 Td (Page 7) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 68.00 740.70 Td ( ) Tj ET Q BT /F2 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 ef) Tj ET Q q 0 0 0 rg BT 301.30 740.70 Td (fects associated with product defects and errata ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 726.30 Td (\(deviations from published specifications\), and by litigation or regulatory matters involving ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 711.90 Td (intellectual property) Tj ET Q q 0 0 0 rg BT 182.18 711.90 Td (, stockholder) Tj ET Q q 0 0 0 rg BT 243.69 711.90 Td (, consumer) Tj ET Q q 0 0 0 rg BT 295.86 711.90 Td (, antitrust, disclosure and other issues, such as the ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 697.50 Td (litigation and regulatory matters described in Intel's SEC reports. ) Tj ET Q q 0 0 0 rg BT 400.09 697.50 Td (An unfavorable ruling could ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 683.10 Td (include monetary damages or an injunction prohibiting Intel from manufacturing or selling one or ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 668.70 Td (more products, precluding particular business practices, impacting Intel's ability to design its ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 654.30 Td (products, or requiring other remedies such as compulsory licensing of intellectual property) Tj ET Q q 0 0 0 rg BT 520.43 654.30 Td (. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 625.50 Td (A) Tj ET Q q 0 0 0 rg BT 58.00 625.50 Td ( detailed discussion of these and other factors that could af) Tj ET Q q 0 0 0 rg BT 339.03 625.50 Td (fect Intel's results is included in Intel's SEC ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 50.00 611.10 Td (filings, including the company's most recent reports on Form 10-Q and Form 10-K. ) Tj ET Q BT /F1 9.00 Tf ET endstream endobj 17 0 obj <> /View <>>>>> endobj 18 0 obj <> /View <>>>>> endobj 19 0 obj <> endobj 20 0 obj <> endobj 21 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>|;