8-KRegulation FD

INTEL CORP 8-K Report, Regulation FD Disclosure (May 7, 2010)

Filed May 7, 2010For Securities:INTC

Summary

Intel Corporation (INTC) announced an update on its investment in Numonyx Holdings BV following Micron Technology, Inc.'s completion of its acquisition of Numonyx. As part of the transaction, Intel received approximately 64.2 million shares of Micron common stock and issued a $72 million short-term payable. Intel is also poised to receive an additional 2.3 million shares of Micron upon Numonyx's sale of a facility to STMicroelectronics, a deal expected to close in about 45 days. This development significantly impacts Intel's second-quarter financial outlook. Consequently, Intel now anticipates a gain of approximately $180 million from equity investments and interest and other for the second quarter, a substantial increase from its previous expectation of roughly zero. The company also revised its second-quarter tax rate expectation upwards from approximately 31% to 32%. All other business outlook expectations remain unchanged. Investors should note the inherent risks associated with these forward-looking statements, including market demand fluctuations, competitive pressures, product transitions, manufacturing yields, and macroeconomic conditions.

Key Highlights

  • 1Micron Technology completed its acquisition of Numonyx Holdings BV.
  • 2Intel received approximately 64.2 million shares of Micron common stock in exchange for its Numonyx investment.
  • 3Intel is expected to receive an additional 2.3 million Micron shares upon Numonyx's facility sale to STMicroelectronics.
  • 4Intel's second-quarter outlook for equity investments and interest income now projects a gain of approximately $180 million, up from a prior expectation near zero.
  • 5Intel's projected second-quarter tax rate has been revised upwards from 31% to 32%.
  • 6The Numonyx senior credit facility supported by Intel's guarantee is being repaid as part of the acquisition closing.

Frequently Asked Questions

Intel now expects a gain of approximately $180 million from equity investments and interest and other for the second quarter, a significant improvement from its previous expectation of around zero. This gain is primarily due to the shares of Micron common stock received in the transaction.

Intel received approximately 64.2 million shares of Micron common stock as part of the transaction. An additional 2.3 million shares are expected upon the closing of Numonyx's facility sale to STMicroelectronics.

The company stated that all other expectations remain unchanged, with the exception of the tax rate. The tax rate expectation for the second quarter has been revised from approximately 31% to 32%.

Key risks include fluctuations in demand due to economic conditions, customer acceptance, order patterns, and inventory levels. Competitive pressures, challenges with new product transitions (e.g., 32nm technology), manufacturing yield variations, and macroeconomic factors are also significant concerns.