Inside Intel -- Fool by Numbers

On July 19, Intel (Nasdaq: INTC  ) released Q2 2005 earnings for the period ending July 2, 2005.

• Revenues were up 14.7% over the same period last year, when it missed its revenue target.
• Gross margins dropped 3%.
• Inventory was down 15%. (Are these two related?)

(Figures in millions, except per-share data)

Income Statement Highlights(What's this?)

	Avg. Est.	Q2 2005	Q2 2004	% Change
Sales	$9,230	$9,231	$8,049	+14.7%
Net Profit	--	$2,038	$1,757	+16.0%
EPS	$0.32	$0.33	$0.27	+22.2%

Margin Checkup(What's this?)

	Q2 2005	Q2 2004	Change
Gross Margin	56.36%	59.39%	-3.02%
Op. Margin	28.70%	29.58%	-0.88%
Net Margin	22.08%	21.83%	+0.25%

Balance Sheet Highlights(What's this?)

Assets	Q2 2005	Q2 2004	% Change
Cash+ ST Invest.	$12,600	$14,264	-11.7%
Inventory	$2,739	$3,223	-15.0%
Accounts Rec.	$3,448	$3,183	+8.3%

Liabilities	Q2 2005	Q2 2004	% Change
Long-Term Debt	$430	$898	-52.1%
Accounts Pay.*	$5,425	$5,253	+3.3%

*Includes accrued liabilities. May not be 100% comparable.

Cash Flow Highlights(What's this?)

	Q2 2005	Q2 2004	% Change
Cash From Ops*	$2,738	$2,693	+1.7%
Capital Expend.	$1,470	$1,059	+38.8%
Free Cash Flow	$1,268	$1,634	-22.4%

*Rough estimate based on Intel's incomplete cash-flow information. Does not properly account for changes in working capital.

Related Companies:

• AMD (NYSE: AMD  )
• IBM (NYSE: IBM  )
• Dell (Nasdaq: DELL  )
• Microsoft (Nasdaq: MSFT  )
• Cisco (Nasdaq: CSCO  )
• Apple (Nasdaq: AAPL  )

Related Foolishness:

• Revisit last year's miss.
• What's inside Intel is often inventory.
• Learn more about the inventory story.

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 Jayson had positions in no company mentioned. Fool rules are here.