Company's Annual Report:  We applaud Intel for its 2009 Annual Report, given that it's only four pages, including the cover.  Wow... succinct is so refreshing.  Here's what we found:

• New Marketing Campaign:  Celebrating the passion of its employees, the new campaign features them, and incorporates the new tagline, "Intel... Sponsors of Tomorrow."  We actually think that good advertising can encourage greater participation by shareholders.  We especially like the commercial featuring the creator of the USB connection, Ajay Bhatt, which treats him like a major celebrity in the Intel workplace, and then ends with "Our rock stars aren't like your rock stars."  Great commercial.  You can see it here >

• Growth Opportunities:  Indicates that the range of products, especially mobile devices, is growing for Intel, utilizing its chips.

• Education Commitment:  Philanthropy is always good.  Good PR to further promote technology and "the next generation of innovators."

• Touts New Technology:  Intel started selling its newest, smallest 32nm (nanometer) processors (being sold as Core i3, Core i5 and dual-core mobile Core i7 brands), and plans to launch even smaller 22nm processors in 2011.  As we understand this, smaller processors require not only less space in devices, but also less energy, therefore contributing to longer battery life, especially in the new mobile internet wave that is occurring.  Given the expected explosion in growth for mobile devices, this technology and the 22nm processors expected in 2011, should position Intel well for future revenue growth to coincide with the growth of these devices.

• Topline Financial Results:  Intel decided to present six key charts of information on their first inside page of their Annual Report, indicating trend lines for the following:

  • Net Revenue - 2000-2009:   In a tough year, revenue was down to $35.1 billion from $37.6 billion in 2008.

  • Diluted Earnings Per Share - 2005-2009:  $0.77 per share in 2009, compared to $0.92 in 2008.

  • Geographic Breakdown of Revenue (percentages):  Share of revenue is shifting from Europe and the Americas, showing growth in both Japan and Asia-Pacific regions.

  • Dividends Per Share Paid - 2005-2009:  Although revenue and earnings per share declined, dividends were actually increased $0.01 per share to $0.56 per share.  A good sign of confidence, and a commitment to its shareholders.

  • Capital Additions to Property, Plant & Equipment - 2005-2009:  Capital investment decreased significantly to $4.5 billion in 2009, compared to $5.2 billion in 2008.

  • Research & Development Spending - 2005-2009:  Remained steady with 2008 levels at the same $5.7 billion.

• Letter from the CEO:  Key bullet points as a takeaway from his letter:

  • Planned 12.5% dividend increase in the 1st Quarter, 2010.  Another great sign of confidence and continued commitment to its shareholders when many companies have been cutting (or even eliminating) their dividend payouts to shareholders.

  • Microprocessor unit shipments for PCs - up 6% in 2009.

  • In 2009, signed new agreements with cell phone makers, LG and Nokia to collaborate with them to create Intel Atom processor-based mobile devices.

  • Expanded into software expertise by acquiring Wind River Systems in 2009, a leading developer of embedded device software.

  • Legal Settlements/Payouts - Paid total of $2.7 billion in settlements and fines:  $1.45 billion European Commission fine from charges that Intel violated European competition laws; & settled with AMD over antitrust and patent disputes, paying AMD $1.25 billion.

  • New York State Antitrust Charges:  Filed in the fall of 2009, both the New York Attorney General and the Federal Trade Commission levied antitrust charges against Intel, litigation now ongoing to fight these charges.

                                                          [link to this information - here >]

SEC-required Form 10-K:  It would take several hundred additional website pages here to go through the 130-page Intel Form 10-K document, and interpret it.  While we do plan to come back to this, we have created an outline & checklist of key information to find, using our our free workbook.

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                                        [link to this information - here >]