Steve,
does Intel include investment sales into revenues when they calculate their margin?
siliconinvestor.com
3 ME 07/01/00
Net revenues $8,300
Cost of sales 3,283
Research and development 971
Marketing, general and administrative 1,223
"Amortization of goodwill and other acquisition-
related intangibles" 394
Purchased in-process research and development 21
Operating costs and expenses 5,892
Operating income 2,408
Interest expense (9)
Interest income and other, net 2,350
Income before taxes 4,749
Provision for taxes 1,612
Net income $3,137
Basic earnings per common share $0.47
Diluted earnings per common share $0.45
Cash dividends declared per common share $0.020
Weighted average common shares outstanding 6,710
=======
Weighted average common shares outstanding, 7,005
assuming dilution
The answer is that investment gains are NOT added to revenues to figure margin. Intel's margin above is:
Rev 8300 - cost of sales 3283 = gross profit 5017
so, gross profit 5017/revenue 8300 = 60.4% gross margin.
Intel's increasing margins have not been a result of investment gains.
That ought to make you feel better. Hope this helps.
Barry |
