The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not reflect the potential impact of any mergers or acquisitions that may be completed after the date of this release. Consistent with the company's earlier expectations, second half revenue is expected to be greater than first half revenue. In the short-term, Intel's gross margin percentage varies primarily with revenue levels and product mix.
Expenses are dependent in part on the level of revenue.
Intel is on track to complete the reduction of approximately 3,000 employees by the end of the year. The tax rate for the fourth quarter of 1998 is expected to be 33.0 percent. This change in guidance is primarily as a result of the facilities realignment that the company mentioned in the third quarter pre-release in September and the company's continued efforts to control costs. The current estimate includes the acquisition of the capital assets of Digital Equipment Corporation's semiconductor manufacturing operations. The above statements contained in this outlook are forward-looking statements that involve a number of risks and uncertainties.