Intel, Inventory Inside: Fool by Numbers

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On Jan. 17, Intel (Nasdaq: INTC) released Q4 2005 earnings for the period ending Dec. 31, 2005.

• Revenue, earnings, and margins miss Street expectations and company guidance.
• Inventory growth outpaces sales by a wide margin.
• Updated 2006 revenue guidance is lower than the low end of analyst estimates.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q4 2005	Q4 2004	% Change
Sales	$10,560	$10,201	$9,598	+6.3%
Net Profit	--	$2,453	$2,123	+15.5%
EPS	$0.43	$0.40	$0.33	+21.2%

Learn more about the income statement.

Margin Checkup

	Q4 2005	Q4 2004	Change
Gross Margin	61.76%	56.02%	+5.74%
Op. Margin	32.44%	30.21%	+2.22%
Net Margin	24.05%	22.12%	+1.93%

For more information on the importance of margins, check your Foolish fundamentals.

Balance Sheet Highlights(What's this?)

Assets	Q4 2005	Q4 2004	% Change
Cash + ST Invest.	$11,314	$14,061	-19.5%
Inventory	$3,126	$2,621	+19.3%
Accounts Rec.	$3,914	$2,999	+30.5%

Liabilities	Q4 2005	Q4 2004	% Change
Long-Term Debt	$2,106	$703	+199.6%
Accounts Pay.	$6,453	$6,050	+6.7%

Concerned about that inventory buildup? Learn what it can tell you about a company's health.

Cash Flow Highlights(What's this?)

Quarterly CF	Q4 2005	Q4 2004	% Change
*Cash From Ops	$3,526	$3,305	+6.7%
Capital Expend.	$1,359	$1,031	+31.8%
Free Cash Flow	$2,167	$2,274	-4.7%

*Complete cash flow statement not yet supplied by Intel. Comparable rough estimate of cash from ops = net income + depreciation + amortization. Capex assumed to include acquisitions.

Find out why Fools always follow the money.

Related Companies:

• AMD (NYSE: AMD)
• Apple (Nasdaq: AAPL)
• Dell (Nasdaq: DELL)
• TexasInstruments (NYSE: TXN)
• Freescale Semiconductor (NYSE: FSL)

Related Foolishness:

• Foolish Fundamentals: Margins
• Foolish Fundamentals: Free Cash Flow
• Foolish Fundamentals: Valuation
• Foolish Fundamentals: GAAP

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication,Seth Jaysonheld no financial position in any company mentioned here. Dell is aMotley Fool Stock Advisorrecommendation. Fool rules arehere.