** The company expects revenue for the second quarter of 1999 to be flat to slightly down from first quarter revenue of $7.1 billion, due to seasonal factors.
** Gross margin percentage in the second quarter of 1999 is expected to be approximately flat with 59 percent in the first quarter. Intel's gross margin expectation for 1999 is 57 percent, plus or minus a few points. In the short term, Intel's gross margin percentage varies primarily with revenue levels and product mix.
** Expenses (R&D plus MG&A) in the second quarter of 1999 are expected to be approximately 6 to 10 percent higher than first quarter expenses of $1.6 billion, due to higher spending associated with
merchandising and increased R&D. Expenses are dependent in part on the level of revenue.
** R&D spending is expected to be approximately $3.0 billion for the full year 1999.
** The company expects interest and other income for the second quarter of 1999 to be approximately $300 million, depending on interest rates, cash balances, the company's ability to realize expected gains, and
assuming no unanticipated items.
** The tax rate for 1999 is expected to be 33.0 percent. Tax rate guidance for 1999 has been lowered from previous guidance of 33.5 percent.
** Capital spending for 1999 is expected to be approximately $3.0 billion.
** Depreciation and amortization is expected to be approximately $3.3 billion for 1999. Depreciation and amortization for the second quarter of
1999 is expected to be approximately $800 million.