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The statements in this document that refer to plans and expectations
for the second quarter, the year and the future are forward-looking
statements that involve a number of risks and uncertainties.
A number of factors in addition to those discussed above could
cause actual results to differ materially from expectations.
Demand for Intel's products, which impacts revenue and the gross
margin percentage, is affected by business and economic conditions,
as well as computing and communications industry trends, and
changes in customer order patterns. Intel conducts much of its
manufacturing, assembly and test, and sales activities outside
the United States and is thus subject to a number of other factors,
including currency controls and fluctuations, tariff and import
regulations, and regulatory requirements which may limit Intel's
or its customers' ability to manufacture, assemble and test,
design, develop or sell products in particular countries. If
terrorist activity, armed conflict, civil or military unrest
or political instability occurs in the United States, Israel
or other locations, such events may disrupt manufacturing, assembly
and test, logistics, security and communications, and could
also result in reduced demand for Intel's products. The impacts
of major health concerns, or of large-scale outages or interruptions
of service from utility or other infrastructure providers, on
Intel, its suppliers, customers or other third parties could
also adversely affect Intel's business and impact customer order
patterns. Revenue and the gross margin percentage are affected
by competing chip architectures and manufacturing technologies,
competing software-compatible microprocessors, pricing pressures
and other competitive factors, as well as market acceptance
of Intel's new products, availability of sufficient inventory
to meet demand, availability of externally purchased components
or materials, and the development and timing of compelling software
applications and operating systems that take advantage of the
features of Intel's products. Future revenue is also dependent
on continuing technological advancement, including developing
and implementing new processes and strategic products, as well
as the timing of new product introductions, sustaining and growing
new businesses and integrating and operating any acquired businesses.
The gross margin percentage could also be affected by the execution
of the manufacturing ramp, including the ramp of 90 nm process
technology on 300 mm wafers, excess manufacturing capacity,
excess or obsolete inventory, variations in inventory valuation
and impairment of manufacturing or assembly and test assets.
The expectation regarding gains or losses from equity securities
and interest and other assumes no unanticipated events and varies
depending on equity market levels and volatility, gains or losses
realized on the sale or exchange of securities, impairment charges
related to non-marketable and other investments, interest rates,
cash balances, and changes in fair value of derivative instruments.
Expectations of impairment charges on investments are based
on experience, and it is not possible to know which specific
investments are likely to be impaired or the extent or timing
of individual impairments. Results could also be affected by
adverse effects associated with product defects and errata (deviations
from published specifications), and by litigation involving
intellectual property, stockholder, consumer and other issues,
such as the litigation described in Intel's SEC reports, as
well as other risk factors listed in Intel's SEC reports, including
the report on Form 10-K for the year ended December 27, 2003.
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