Intel will increase it as quickly as possible. Cash and investments rose to $11.9 billion, a gain of 12% from the second quarter, while net cash increased 19% from $13.3 billion to $15.8 billion. Looking Ahead Strong seasonal demand is expected for all products and all product segments to end 1999. Revenue should rise in Q4 from Q3's $7.3 billion. Gross margin should gain a few points from 58.7% due to more high-end processors being delivered at lower cost thanks in part to improved manufacturing efficiencies. Intel's average cost of producing a microchip remains below the desired level presented last year. Spending in Q4 should rise 9% to 12% due to typical seasonal marketing expenses and acquisitions. Research and development should be near $3.1 billion for the year, up slightly from the $3.0 billion in guidance due mainly to research and development costs at acquired companies. The Pentium III is now the highest-volume shipping processor at Intel and therefore in the world.