Revenue in the second quarter is expected to be between $7.6 billion and $8.2 billion.

Gross margin percentage in the second quarter is expected to be approximately 60 percent, plus or minus a couple of points. Intel's gross margin percentage varies primarily with revenue levels, product mix and pricing, changes in unit costs and inventory valuation, capacity utilization, and the timing of factory ramps and associated costs.

The gross margin percentage expectation for 2004 is unchanged at approximately 62 percent, plus or minus a few points.

Expenses (R&D plus MG&A) in the second quarter are expected to be approximately $2.4 billion, higher than $2.34 billion in the first quarter primarily due to annual wage increases that took effect on April 1. Expenses, particularly certain marketing- and compensation-related expenses, vary depending on the level of revenue and profits.

The R&D spending expectation for 2004 is unchanged at approximately $4.8 billion.

The capital spending expectation for 2004 is unchanged at between $3.6 billion and $4.0 billion.

Gains from equity investments and interest and other in the second quarter are expected to be approximately $60 million.

The tax rate expectation for 2004 is unchanged at approximately 32 percent. The tax rate expectation is based on current tax law and current expected income, and assumes Intel will continue to receive tax benefits for export sales. The tax rate may be affected by the closing of acquisitions or divestitures, the jurisdiction in which profits are determined to be earned and taxed, and the ability to realize deferred tax assets.

Depreciation is expected to be between $1.1 billion and $1.2 billion in the second quarter and approximately $4.6 billion for the year.

Amortization of acquisition-related intangibles and costs is expected to be approximately $40 million in the second quarter and approximately $170 million for the full year.