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:
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.