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Intel: Financial AnalysisMar 05Jun 05Sep 05Dec 05Mar 06Jun 06Sep 06Dec 06Mar 07Jun 07Sep 07Dec 07Mar 08EFY 2005FY 2006FY 2007FY 2008EFY 2009E

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Analysis By:

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Silicon Alley Insider

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INCOME STATEMENTMar 05Jun 05Sep 05Dec 05Mar 06Jun 06Sep 06Dec 06Mar 07Jun 07Sep-07Dec 07Mar 08EFY 2005FY 2006FY 2007FY 2008EFY 2009E

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Revenues$9,434$9,231$9,960$10,201$8,940$8,009$8,739$9,694$8,852$8,680$10,090$10,712$9,673$38,826$35,382$38,334$39,770$42,677

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Y/Y Change-5%-13%-12%-5%-1%8%15%11%9%-9%8%4%7%

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Cost of Revenue$3,836$4,028$4,012$3,901$3,997$3,838$4,445$4,884$4,420$4,605$4,806$4,486$4,466$15,777$17,164$18,317$19,090$20,485

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Margin41%44%40%38%45%48%51%50%50%53%48%42%46%41%49%48%48%48%

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Gross Profit$5,598$5,203$5,948$6,300$4,943$4,171$4,294$4,810$4,432$4,075$5,284$6,226$5,207$23,049$18,218$20,017$20,680$22,192

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Margin59%56%60%62%55%52%49%50%50%47%52%58%54%59%51%52%52%52%

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R&D$1,266$1,176$1,341$1,362$1,562$1,496$1,389$1,426$1,400$1,353$1,526$1,481$1,467$5,145$5,873$5,760$5,966$6,402

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Margin13%13%13%13%17%19%16%15%16%16%15%14%15%13%17%15%15%15%

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Marketing, General & Administrative$1,262$1,342$1,478$1,606$1,644$1,593$1,425$1,434$1,277$1,284$1,383$1,462$1,349$5,688$6,096$5,406$5,568$6,402

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Margin13%15%15%16%18%20%16%15%14%15%14%14%14%15%17%14%14%15%

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Amortization & Other Intangible Costs$38$36$29$23$19$10$106$462$80$88$128$236$329$126$597$532$398$427

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Margin0%0%0%0%0%0%1%5%1%1%1%2%3%0%2%1%1%1%

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Operating Income$3,032$2,649$3,100$3,309$1,718$1,072$1,374$1,488$1,675$1,350$2,247$3,047$2,062$12,090$5,652$8,319$8,749$8,962

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Margin32%29%31%32%19%13%16%15%19%16%22%28%21%31%16%22%22%21%

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Investment Income & Other$119$105$143$153$156$181$440$639$198$179$359$214$109$520$1,416$950$800$900

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Pre-Tax Income$3,151$2,754$3,243$3,462$1,874$1,253$1,814$2,127$1,873$1,529$2,606$3,261$2,171$12,610$7,068$9,269$9,549$9,862

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Margin33%30%33%34%21%16%21%22%21%18%26%30%22%32%20%24%24%23%

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Provision for income taxes$973$716$1,248$1,009$517$368$513$626$263$251$746$990$728$3,946$2,024$2,250$2,101$2,170

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% of EBT31%26%38%29%28%29%28%29%14%16%29%30%34%31%29%24%22%22%

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Net Income$2,178$2,038$1,995$2,453$1,357$885$1,301$1,501$1,610$1,278$1,860$2,271$1,443$8,664$5,044$7,019$7,449$7,692

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Margin23.09%22.08%20.03%24.05%15.18%11.05%14.89%15.48%18.19%14.72%18.43%21.20%14.92%22%14%18%19%18%

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EPS (Diluted)$0.35$0.33$0.32$0.40$0.23$0.15$0.22$0.26$0.27$0.22$0.31$0.38$0.25$1.40$0.86$1.18$1.24$1.27

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Y/Y Change-34%-54%-31%-37%20%43%40%48%-10%

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Shares Out (Diluted)6,2736,2156,1446,0815,9545,8685,8325,8675,8745,9175,9675,9885,8796,1785,8805,9395,9986,058

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Y/Y Change-5%-6%-5%-4%-1%1%2%2%0%-5%1%1%1%

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PRODUCT SUMMARYMar 05Jun 05Sep 05Dec 05Mar 06Jun 06Sep 06Dec 06Mar 07Jun 07Sep 07Dec 07Mar 08E20052006200720082009

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Digital Enterprise Group

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Microprocessor Revenue$4,944$4,603$4,936$4,929$3,892$3,338$3,521$3,855$3,561$3,465$3,880$4,328$4,123$19,412$14,606$15,234$15,386$15,848

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Y/Y Change-21%-27%-29%-22%-9%4%10%12%16%-25%4%1%3%

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% of Total52%50%50%48%44%42%40%40%40%40%38%40%43%50%41%40%39%37%

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Chipset, Motherboard & Other$1,417$1,398$1,434$1,476$1,255$1,283$1,425$1,307$1,193$1,178$1,324$1,411$1,175$5,725$5,270$5,106$4,391$4,040

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Y/Y Change-11%-8%-1%-11%-5%-8%-7%8%-2%-8%-3%-14%-8%

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% of Total15%15%14%14%14%16%16%13%13%14%13%13%12%15%15%13%11%9%

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Total$6,361$6,001$6,370$6,405$5,147$4,621$4,946$5,162$4,754$4,643$5,204$5,739$5,298$25,137$19,876$20,340$19,778$19,888

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Y/Y Change-19%-23%-22%-19%-8%0%5%11%11%-21%2%-3%10%

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% of Total67%65%64%63%58%58%57%53%54%53%52%54%55%65%56%53%50%47%

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Mobility Group

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Microprocessor Revenue$1,917$2,056$2,331$2,400$2,347$1,958$2,239$2,668$2,441$2,398$2,832$2,989$2,726$8,704$9,212$10,660$11,619$13,014

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Y/Y Change22%-5%-4%11%4%22%26%12%12%6%16%9%12%

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% of Total20%22%23%24%26%24%26%28%28%28%28%28%28%22%26%28%29%30%

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Chipset, Motherboard & Other$517$566$639$705$632$731$809$925$866$898$1,139$1,118$943$2,427$3,097$4,021$4,865$5,984

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Y/Y Change22%29%27%31%37%23%41%21%9%28%30%21%23%

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% of Total5%6%6%7%7%9%9%10%10%10%11%10%10%6%9%10%12%14%

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Total$2,434$2,622$2,970$3,105$2,979$2,689$3,048$3,593$3,307$3,296$3,971$4,107$3,669$11,131$12,309$14,681$16,485$18,998

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Y/Y Change22%3%3%16%11%23%30%14%11%11%19%12%15%

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% of Total26%28%30%30%33%34%35%37%37%38%39%38%38%29%35%38%41%45%

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Flash Memory Group

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Revenue$578$527$573$600$544$536$507$576$469$494$553$0$0$2,278$2,163$1,516$1,531$1,577

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Y/Y Change-6%2%-12%-4%-14%-8%9%NANA-5%-30%1%3%

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% of Total6%6%6%6%6%7%6%6%5%6%5%0%0%6%6%4%4%4%

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All Other

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Revenue$61$81$47$91$270$163$238$363$322$247$362$866$706$280$1,034$1,797$1,977$2,214

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Y/Y Change343%101%406%299%19%52%52%139%119%269%74%10%12%

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% of Total1%1%0%1%3%2%3%4%4%3%4%8%7%1%3%5%5%5%

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TOTAL REVENUE$9,434$9,231$9,960$10,201$8,940$8,009$8,739$9,694$8,852$8,680$10,090$10,712$9,673$38,826$35,382$38,334$39,770$42,677

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Y/Y Change-5%-13%-12%-5%-1%8%15%11%9%-9%8%4%7%

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CAP EX

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Capital Expenditures$1,788$1,403$1,282$1,398$1,767$1,757$1,188$1,148$1,361$1,278$1,088$1,273

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Y/Y Change25%-7%-18%-23%-27%-8%11%

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% of Revenue19%15%13%14%20%22%14%12%15%15%11%12%

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BALANCE SHEET

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Cash, Equivalents + Marketable Secs.$13,673$12,600$11,951$11,314$7,854$6,421$7,123$8,868$7,689$8,926$10,796$7,307

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Inventory$2,808$2,739$2,815$3,126$3,567$4,332$4,477$4,314$4,366$4,127$3,538$3,370

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Y/Y Change58%59%38%22%-5%-21%-22%

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% of Revenue30%30%28%31%40%54%51%45%49%48%35%31%

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Debt (Current + Long-Term)$686$748$684$2,419$2,264$2,341$2,256$2,028$1,987$2,069$1,990$1,980

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VALUATION

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Price$19.65

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Shares Outstanding (Diluted)5,967

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MARKET CAPITALIZATION$117,252

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Market Capitalization

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+ Debt$1,990

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- Cash$10,796

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ENTERPRISE VALUE$108,446

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VALUATION RATIOS

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P/E:EPSP/E

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CY 2007E$1.1817x

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CY 2008E$1.2416x

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CY 2009E$1.2715x

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