Inside Intel: Fool by Numbers

On Tuesday, Oct. 16, computer chip giant Intel (NASDAQ:INTC) released third-quarter earnings for the period ended Sept. 29.

The average selling prices for Intel's processors were flat from last quarter, at long last putting an end to a pricing slide. The company also shipped products out in record unit volumes, increasing total revenues significantly for the microprocessor segment.
The gross margin improvement bears out the same story, along with lower manufacturing costs. The margins also show Intel's newfound willingness to walk away from low-margin deals once in a while. It's not the end of the price war, but you could call it a ceasefire.
Intel also had a large increase in new unit volume in flash memory chips -- but that segment still reported a sizable operating loss. The company is spinning out some of its flash assets in a joint venture with STMicroelectronics (NYSE:STM), presumably to limit the negative exposure to a low-profit market.

(Figures in millions, except per-share data)

Income Statement Highlights

Get back to basics with the income statement.

Margin Checkup

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q3 2007	Q3 2006	Change
Cash + ST Invest.	$10,796	$7,123	51.6%
Accounts Rec.	$2,933	$3,358	(12.7%)
Inventory	$3,541	$4,477	(20.9%)

Liabilities	Q3 2007	Q3 2006	Change
Accounts Payable	$2,338	$2,401	(2.6%)
Long-Term Debt	$1,853	$2,060	(10%)

The balance sheet reflects the company's health.

Cash Flow Highlights

	Q3 2007	Q3 2006	Change
Capital Expenditures	$1,088	$1,167	(6.8%)
Owner Earnings	$1,935	$1,390	39.2%

Free cash flow is a Fool's best friend.

Competitive Breakdown

Using the latest reported numbers from Capital IQ. Nobody is anybody without some context.

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