Intel 1999 Annual Report Download - page 20

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Reference is made to the information appearing under the heading "Management's discussion and analysis of financial condition and results of
operations" on pages 30 through 36 of the company's 1999 Annual Report to Stockholders, which information is hereby incorporated by
reference.
In March 2000, the company completed the acquisition of GIGA A/S in a cash transaction valued at approximately $1.25 billion. GIGA
specializes in the design of high-
speed communications chips used in optical networking and communications products that direct traffic across
the Internet and corporate networks. This acquisition targets the market segment for networking chips enabling the build-out of the fiber-optic
infrastructure necessary to support the growth of the Internet.
Also in March 2000, Intel entered into a definitive agreement to acquire privately held Basis Communications Corporation in a transaction
valued at approximately $450 million in cash and assumed options. Basis designs and markets semiconductors and other products used in
equipment that directs traffic across the Internet and corporate networks. Its products include network processors and related software targeted
for a range of "network access" systems and customer premise equipment used in homes and small to medium-size offices. This transaction is
subject to regulatory review and customary closing conditions.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Reference is made to the information appearing under the subheading "Financial market risks" under the heading "Management's discussion
and analysis of financial condition and results of operations" on page 33 of the company's 1999 Annual Report to Stockholders, which
information is hereby incorporated by reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Consolidated financial statements of Intel at December 25, 1999 and December 26, 1998, and for each of the three years in the period ended
December 25, 1999 and the Report of Independent Auditors thereon, and the company's unaudited quarterly financial data for the two-year
period ended December 25, 1999 are incorporated by reference from the company's 1999 Annual Report to Stockholders, on pages 13 through
29 and page 37.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
Not applicable.
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