Raise in cash dividend comes following strong PC market upswing
Intel has continued its upward growth, revealing a better than expected outlook for 2015 to investors.
The computing giant revealed at its annual investors day that it expects revenues to grow by a ‘mid-single digit percentage’ next year, higher than many analyst expectations, following a third quarter of encouraging financial performance last month.
Intel also revealed it expects a gross margin of 62 percent, plus or minus two points, and that its capital spending next year would be about $10.5 billion, compared to about $11 billion expected in 2014.
Spending on research and development was also forecast to be lower than in 2014, coming in at around $20 billion including marketing, general and administrative costs.
Intel also said that its board of directors had approved a 6 cent increase in its cash dividend to 96 cents-per-share on an annual basis, starting with the first quarter dividend next year.
“Today’s dividend announcement reflects the board’s confidence in Intel’s strategy,” said Intel Chairman Andy Bryant. “It also reflects the board’s ongoing commitment to create value and return cash to Intel’s stockholders.”
CEO Brian Krzanich said that the company will look to its PC and data centre businesses to maximise shareholder value, with its manufacturing capability, architecture and the use of shared IP being key elements of its ongoing growth strategy.
Intel has endured a tough few months as the company has looked to refocus its strategy in the face of an evolving PC market. Last week, the company announced it would be merging its loss-making mobile processor division into its PC business in the face of major competition in the market.
The Mobile and Communications Group reported an operating loss of more than $1 billion in Intel’s last quarter, contrasting with a major recovery in its PC business, which in its last quarterly results posted revenues of $9.2bn (£5.8bn), up six percent sequentially and up nine percent year-over-year.
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