IN-CLASS EXERCISE: Analyzing Income Statement and CFS

Read over the financial tables given below. After analyzing the tables, decide
which company you would prefer to invest in. Be prepared to give your reason.

Intel Corporation is a semiconductor chip maker. The Company is engaged in

developing advanced integrated digital technology products, primarily integrated circuits,
for industries, such as computing and communications. Its primary component products
include microprocessors, chipsets, wired and wireless connectivity. (hoovers.com)

Intel Corp. INCOME STATEMENT 2008 2007 2006

Revenue ($mil.) 37,586.0 38,334.0 35,382.0
Gross Profit ($mil.) 20,844.0 19,904.0 18,218.0
Operating Income ($mil.) 7,694.0 9,181.0 7,092.0
Total Net Income ($mil.) 5,292.0 6,976.0 5,044.0
EPS 0.92 1.18 0.86
STRENGTHS:
From the chart, we can see clearly that revenue decreased, but gross profit
increased . So it indicated that cost of sales decreased. In addition, gross profit
increased. These were good news to the company. These were strengths.

WEAKNESSES：
From the chart, we can see clearly that gross profit increased and operatin
income decreased . So it indicated that operating expenses increased.
Revenue,operating income , total net income and EPS decreased. These were
weaknesses.
Intel Corp. CASH FLOW STATEMENT Dec08 Dec07 Dec06
Net Operating Cash Flow 10,926.0 12,625.0 10,620.0
Net Investing Cash Flow (5,865.0) (9,926.0) (4,907.0)
Net Financing Cash Flow (9,018.0) (1,990.0) (6,439.0)
STRENGTHS:
Enterprise Product at the mature, Holding a steady trend.

WEAKNESSES:
Without development potential, lower profits .

Advanced Micro Devices, Inc. is a global semiconductor company with facilities

around the world. The Company offer x86 microprocessors, for the commercial and
consumer markets, embedded microprocessors for commercial, commercial client and
consumer markets and chipsets for desktop and notebook personal computers (PCs),
professional workstations and servers. (hoovers.com)

AMD INCOME STATEMENT 2008 2007 2006

Revenue ($mil.) 5,808.0 6,013.0 5,649.0
Gross Profit ($mil.) 2,320.0 2,262.0 2,793.0
Operating Income ($mil.) (1,980.0) (2,799.0) (17.0)
Total Net Income ($mil.) (3,098.0) (3,379.0) (166.0)
EPS (5.10) (6.06) (0.34)
 STRENGTHS:
1. The company's gross profit on the decline.
2. Operating Income on the decline.
3. Total Net Income on the decline

WEAKNESSES:
Companies are at a loss

AMD CASH FLOW STATEMENT Dec08 Dec07 Dec06

Net Operating Cash Flow (692.0) (310.0) 1,287.0

Net Investing Cash Flow (27.0) (1,675.0) (4,303.0)

Net Financing Cash Flow 220.0 2,037.0 3,763.0

STRENGTHS:
Enterprise Product at the start-up period, the development potential of large.

WEAKNESSES:
1. Investment risk.
2. The need to expand sales.

Through comparative strengths and weaknesses of the two companies, We

choose to invest in Intel. Because If we invest in AMD, Risk may be
considerable, Intel are low-risk. While the profits will be lower, But we as
investors should first ensure that a successful investment, Then is the high
profit.
So,we choose to invest in Intel.