Impressive, Intel: Fool by Numbers

On July 17, chipper chip maker Intel (Nasdaq: INTC) released second-quarter earnings for the period ended June 30.

• Higher product volume and lower selling prices across all segments equals decent revenue growth overall.
• Management says that gross margins will improve by a couple of points in the next quarter, but don't expect an all-out end to the price war with AMD (NYSE: AMD) this year.
• The share buyback program has slowed to a crawl, but would return in full force if Intel had a couple of billion in spare cash flow to throw around. Right now, that's just not the case.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q2 2007	Q2 2006	Change
Sales	$8,680	$8,009	8.4%
Net Profit	$1,278	$885	44.4%
EPS	$0.22	$0.15	46.7%
Diluted Shares	5,917	5,868	0.8%

Get back to basics with the income statement.

Margin Checkup

	Q2 2007	Q2 2006	Change*
Gross Margin	47.0%	52.1%	(5.1)
Operating Margin	15.6%	13.4%	2.2
Net Margin	14.7%	11.1%	3.7

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q2 2007	Q2 2006	Change
Cash + ST Invest.	$8,926	$6,421	39.0%
Accounts Rec.	$2,531	$3,178	(20.4%)
Inventory	$4,127	$4,332	(4.7%)

Liabilities	Q2 2007	Q2 2006	Change
Accounts Payable	$2,179	$2,478	(12.1%)
Long-Term Debt	$1,848	$2,054	(10.0%)

The balance sheet reflects the company's health.

Cash Flow Highlights

	Q2 2007	Q2 2006	Change
Capital Expenditures	$1,278	$1,738	(26.5%)
Owner Earnings	$1,213	$362	235.1%

Free cash flow is a Fool's best friend.

Intel didn't give us the operating cash flow figure yet, but we do have enough info to figure the take-home owner earnings.

Related Foolishness:

• Before the Call: Collective Intel-igence
• Fool on Call: Inside Intel
• Another Path to Profit: Riding Intel's Coattails

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, Fool contributor Anders Bylund was an AMD shareholder, but had no other position in any company mentioned. Intel is a Motley Fool Inside Value pick. Fool rules are here.