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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: steve harris who wrote (109590)	9/10/2000 3:53:26 PM
From: Barry Grossman	Read Replies (1) \| Respond to of 186894

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