The article is an expected outcome based on ASSUMPTIONS. The primary assumption that Russ makes is that:
1. the Intel forecasted 2013 revenues (low single digit increase) are correct and do not deteriorate,
2. the Intel forecasted 2013 margins (Q2 of 58% and full year 60%) are correct and do not deteriorate,
3. the Intel costs are extrapolated forward flat
His article is saying:
Assuming Intel forecasts are right, then this is what we can expect.
It is a very good article to walk through to see what Intel is implying will happen.
It is also a very good article to use as a model for changing some of the assumptions and recalculating the results. You can use it to model what the analysts are projecting.
If the "low single digit" sales growth guidance and 60% full year gross margin is still intact, the second half will have to be $29.58 billion sales and $18.452 billion gross profit. Let's assume that the third and fourth quarter sales are split 48% and 52% and gross profit is split by the same percentages. I will take the liberty of holding R&D flat and SG&A as a percentage of sales. Assume taxes at 20% as in the first quarter.
That would make the third and fourth quarters look like this: