The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. These statements do not take into account the potential effects of future mergers or acquisitions. In the short-term Intel s gross margin percentage varies primarily with revenue levels and product mix. Intel s long-term gross margin percentage will vary depending on product mix.
Expenses are dependent in part on the level of revenue.
The tax rate in 1997 is expected to remain at 35.5 percent. The above statements contained in this outlook are forward-looking statements that involve a number of risks and uncertainties. These statements do not take into account the potential financial effects of future mergers or acquisitions, including any one time charges, and related operational risks such as the company s ability to successfully integrate any acquired businesses, enter new market segments and manage the growth of such businesses. Unit shipments of microprocessors set a record in the third quarter. Chipset units were up in the third quarter from the second quarter of 1997.