Intel to earmark $4.6 billion for R&D plus MG&A spending in second quarter 2012

Telecom Lead India: Chipmaker Intel said its R&D plus
MG&A spending in the second quarter of 2012 will be approximately $4.6

For the full year, R&D plus MG&A spending is
expected to be $18.3 billion, plus or minus $200 million.

Intel’s full-year capital spending will be $12.5 billion,
plus or minus $400 million.

Chipmaker Intel has posted first quarter revenue of $12.9
billion, up from $12.85 billion in the year-ago period.

GAAP net income in the first quarter was $2.74 billion,
down from $3.16 billion in the year-ago period.

The first quarter was a solid start to what’s expected
to be another growth year for Intel. In the second quarter we’ll see the first
Intel-based smartphones in the market, ship products based on 22nm tri-gate
technology in high volume, and accelerate the ramp of our best server product
ever, providing a tremendous foundation for growth in 2012 and beyond,” said
Paul Otellini, Intel president and CEO.

Intel said revenue in the current quarter would be $13.6
billion, plus or minus $500 million.

Shaky economies in Europe and the United States, a growing
consumer preference for tablets, and a recent shortage of hard drives due to
flooding in Thailand have taken a toll on the PC industry.

But demand in China and other emerging economies has
helped sustain PC growth, and Intel’s server business has been a winner from
the buildout of servers behind the Internet and data consumed on smartphones.

Intel said non-GAAP gross margins in the second quarter
would be between 63 percent, plus or minus 2 percentage points.

The company generated approximately $3.0 billion in cash
from operations, paid dividends of $1.0 billion and used $1.5 billion to
repurchase stock.


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