Intel Corporation

We have added“ cost of sales” and “operating expenses ”in the table.
Intel Corp. INCOME STATEMENT 2008 2006 Rate
Revenue ($mil.) 37,586.0 35,382.0 6.23%
Cost of sales ($mil.) 16,742.0 17,165.0 -4%(cost/sales)
Gross Profit ($mil.) 20,844.0 18,218.0 14.41%
Operating expenses($mil) 1,315.0 11,126 18.19%
Operating Income ($mil.) 7,694.0 7,092.0 8.49%
Total Net Income ($mil.) 5,292.0 5,044.0 4.92%
EPS 0.92 0.86 6.98%
STRENGTHS:
1. Between the years 2006 and 2008. Company Intel managed to increase revenue by
about 6.23%, while reducing its cost from 48.5% to 44.5 %[( Revenue-gross
profit)/Revenue] of sales.

2. Gross income in 2008 increased significantly, which is a huge plus for the company`s
profitability.

3. In 2008 Intel’s operating income has raised about8.49%.

4. The bottom line-net income-for the company in 2008 has increased from $5,044 in
2006 to 5,292 in 2008. It’s not too much, but it is very difficult to get such a profit in
2008.

5. Intel’s EPS has increased about 6.98%. This is very good. Anyway, EPS is an important
element of investment
WEAKNESSES

1. The Intel’s profit margins went down from 14.3% to 14.1%. (Net income/net
sales). This means Intel’s income may decline in the future.

2. And operating expenses has increased 18.19%, compared with operating income it
has raised too much. It dragged whole company’s income.
Intel Corp. CASH FLOW STATEMENT Dec08 Dec06 Rate
Net Operating Cash Flow 10,926.0 10,620.0 2.88%
Net Investing Cash Flow (5,865.0) (4,907.0) -19.52%
Net Financing Cash Flow (9,018.0) (6,439.0) -40.05%
STRENGTHS:

1. From CFS of Dec06 to Dec08, we can see that the net operating cash flow
for Intel was increased by about 2.88%.

2. The net investing cash flow was always negative. And it has decreased from
-$4907 to- $5865, which is decreased about 19.5%. So much outflow of funds
means that Intel has invested in something. It means that Intel has made good use
of company’s funds.

WEAKNESSES：

1. The net financing cash flow was always negative, too. The cash-out amount
has reached -$9,018. It has decreased by about 40%. It means that Intel has
not raised enough funds. And Intel can’t operate company’s funds
normally.

2. The cash flow for Intel ended Dec08 was $-3957 which is decreased by
about 445.04%. It means Intel did not have enough money now.

3. While investment is a good thing, but Intel’s so much investments give it the
risk of cash shortage.
Advanced Micro Devices

AMD INCOME STATEMENT 2008 2006 Rate

Revenue ($mil.) 5,808.0 5,649.0 2.81%
Cost of sales ($mil.) 3,488.0 2,856.0 9.5%(cost/sales)
Gross Profit ($mil.) 2,320.0 2,793.0 -16.9%
Operating expense ($mil) 4,300.0 2,810 53.02%
Operating Income ($mil.) (1,980.0) (17.0) -29.3%
Total Net Income ($mil.) (3,098.0) (166.0) -8.32%
EPS (5.10) (0.34) -15.8%

STRENGTHS: STRENGTHS:

1. Between the years 2006 and 2008.AMD’s sales increased by about 2.81%.

WEAKNESSES
1. AMD’s cost of sales (gross profit-revenue) increased from 51% to 60%of sales.

2. Gross profit reduced so much---- (-16.9%), which is a huge impact for the
company’s profitability.

3. Also operating income went down from $2,799 to$1,980.

4. While the operating expenses increased rapidly from 50%to 74%. There is no
doubt that ADM has met some serious economic problems.

5. As the result, the bottom line-net income-for the company in 2008 has
decreased from$-166 to $-3,098. 2006 is not a good start. And ADM has not
control this trend.

6. The negative trends in almost all the statement components have dragged the
company’s profit margins from -2.9% to -53.3 %, which is really terrible.

7. Also, AMD’s EPS decreased about 15.8%.

AMD CASH FLOW STATEMENT Dec08 Dec06 Rate

Net Operating Cash Flow (692.0) 1,287.0 -153.77%

Net Investing Cash Flow (27.0) (4,303.0) 99.37%

Net Financing Cash Flow 220.0 3,763.0 -94.15%

STRENGTHS:

1. In Dec06 AMD made substantial investments, the CFI was -$4,303. But in dec08,
the CFI was - $27. It means that AMD has done some countermeasures to solve the
problem of shortage of funds. And the countermeasure has worked.

WEAKNESSES

1. From this CFS, we can see that cash flow for AMD was $ -499. It is not a good
sign for investor. It means that AMD doesn’t have sufficient money for
company’s effective operation.

2. The CFO was reduced about 153.77%. AMD must meet some financial problem
which tied up its capital. This will impact investor’s decision seriously.

3. The CFF was decreased by about 94.15%. AMD always can collected money, but
the amount was decreased.
CONCLUSION

In view of the performance of the two companies, we will invest

Intel. Intel’s EPS was continued to rise. And Intel’s income
statement performed very well. We think Intel will be a good
choice for investors.