Sashi Velnati, ID: 000727010

Publicly Traded Company Assignment Chapter 1

1. Name of company

Intel Corporation (NASDAQ:INTC) headquartered in Santa Clara, California,

USA.

2. Industry: is this a manufacturer or merchandiser?

Manufacturer - Intel is the biggest semiconductor chip maker in the world. INTEL
is most notable for the Microprocessors that power the personal computers. Intel
currently accounts for over 80% of the notebook processor market. INTEL also
makes embedded processors. Motherboards, Network interface cards, graphic
cards, SSD memory, and other devices related to communications and
computing.

3. Why did you select this company?

Referred to, correctly, as the most important company in the world, I always had
great admiration for INTEL. A legendary company with rich history started by the
giants of science world Moore and Grove, is the maker of first successful
microprocessor which is the brain behind every smart electronic device. Without
Intels contribution to make an ever smarter, ever cheaper microprocessor it
would be hard to imagine a world where computers are so ubiquitous. The
Apples and the Facebooks of the world get the headlines for glitz, but INTEL in
my opinion is the powerhouse of true technological innovation. I strongly believe
INTEL will be a company that will continue to make significant contribution
towards the scientific progress of human kind in the future exemplified by their
current vision statement This decade we will create and extend computing
technology to connect and enrich the lives of every person on earth (All 7+billion
people). A lofty goal, but the company needs to be commended for aiming high. I
could not think of a better company to do this paper for this course.

4. Have you ever considered purchasing this firms stock? Why or why not?

INTEL does not have a credible threat from any other company in the non-mobile
microprocessor space. It is true that mobile computing (Smart phones and
tablets) has encroached in to desktop and laptop consumer space and thus
hurting INTEL. However, the increasing demand for the server space, mobile
computing still makes the company a very reliable company to invest in. I
personally prefer stability with my investments and being in my 30s, I am not
seeking to invest in volatile stocks for short term gain which inherently are risky.
For an investor like me looking for stability, a regular dividend income with good
growth potential Intel is a stock worth owning and holding long term. Intel is
making forays in to mobile computing and with a solid track record of
technological brilliance behind it, INTEL will continue the glorious run it has been
on since 1968.

5. Have you ever considered working for this firm? Why or why not?

6.

I have considered working for INTEL when I graduated out of school purely
because of how popular the company was on the campus. I have a lot of friends
who work for INTEL and the almost always say that they work with the smartest
brains on the planet. It would have been great working for a company with the
best physics, electrical, computer science engineers in the world. However a
company that is computing powerhouse was probably not an ideal place for a
trained mechanical engineer like me. I chose to work for an automotive company
instead, which was more suited to my educational background.

How difficult or easy was it to obtain financial information on this company?

The financial information of INTEL is easily accessible. The company website

has a direct financial link on its main page. The 2013 annual report and form
10-K were available to view online and to download as pdf.

Take the time to review the Index of the 10-K. This will assist you when identifying specific
financial and nonfinancial information about your firm. This week please prepare the following:
A brief summary of the president or CEOs message
o The Chairman of the Boards message and the CEOs message for 2013 report
was not part of the 10-K document but was part of the executive letters portion of
the Annual report. The financial information was part of the Chairmans message.

Brian Krzanich, the new CEO of the company professed his dedication to
Moores law which has been a fundamental bedrock principle of INTEL from the
beginning. The idea behind Moores law is the number of transistors in a dense
integrated circuit doubles approximately every two years (more computing power
and cheaper to satisfy the ever increasing demand for faster processing powers)
which was advocated in 1965 by the founder of INTEL which has been the
phenomenally precise to this day. The CEO correctly placed the emphasis on
mobile computing and the need for INTEL to grow in this sector. There is an
ambitious goal to increase the Processors in mobile computing from 10 million
units in 2013 to 40 million units in 2014, a very aggressive target. The CEO also
stressed the importance of innovation with cutting edge technology and a
promise to continue the pace of introduction of new technology products in the
future.

A brief summary of any Risk Factors identified and your evaluation of how significant
these risks might be to stakeholders
o The 10-K statement lists a number of risk factors there are a few that are
relatively low risk while other risk factors may have a higher likelihood to impact
the performance of the company and expose the stakeholders to risk.
o Given the nature of the semiconductor chip manufacturing, which is a vastly
complex industry with many suppliers involved in the supply chain which
manufacture precision parts, the document correctly identifies the supply chain
(thousands of suppliers) as a risk factor.
o Given the increase in the number of global hotspots around the world and
INTELs global operations, the document correctly identifies the uncertainty as a
risk factor which could influence the production.
o The precision componentry involved in the chip production and the amount of
computing code required coupled with a fairly short product cycle lends itself to a
greater risk of errors in the processes relative to other industries. Errors lead to
product delays. This could be a significant risk factor.
o Silicon Valley and tech companies in general are often inundated with
accusations of IP infringements and the nature of the intellectual property
associated with this industry is ripe for litigation. Legal disputes with INTELs
patents might induce a risk factor.
o Tech companies are also prime targets for hackers from other countries, source
code corruption or disrupting the IT systems may disrupt chip manufacturing
production, thus affecting the financial bottom line of the company.
o INTEL apparently has invested a significant portion of its assets in start-ups and
other synergy companies. By definition this is a risk to the investment.
o Regulatory decisions and unforeseen financial conditions that might impact the
global financial operations and the resulting lack of demand, is a significant risk
factor.

Publicly Traded Company Assignment Chapters 2 and 3

Now that you have read more about basic accounting concepts the following information should
be compiled from your company 10-K:
1. Review all four financial statements provided in the 10-K.

2. Are you able to see how the statements are integrated? If not, why not?
Very clear. The statements are integrated
The Statement of cash flows: 5.67 Billion increase in cash shows up as first
entry as Cash Assets in the balance sheet.
The 9.62 billion Net income from the income statement and the cash flows
provided by operating activities used in the statement of cash flows match
The 9.62 billion Net income from the income statement was used in the 2013
portion of the retained earnings portion of the stockholders equity statement
Both the 5.67 billion cash and the 35.47 billion retained earnings balance
from 2013 make it in to the balance sheet
Satisfied the fundamental equation
Assets of 92.358 billion = Liabilities of 34.10 billion+ Stockholders
equity of 58.256 billion
3. Describe the important information included on the Balance Sheet
Liabilities and shareholders equity are split 37% to 63%- surprisingly high
percentage of liabilities than I originally thought
Cash assets only form 6% of INTELs assets. Relatively low percentage
compared to the other tech companies. May not be in a position to buy other
small synergy companies with liquid assets (without assistance from other
financial institutions).
A very impressive 35.47 billion in retained earnings almost 61% of
stockholders equity which shows the companys intention to invest in future
growth.
13.1 billion in long term debt? Can they use some of the retained earnings to
pay down the debt?
4. What is the companys most significant asset?
Cash is the most significant asset for INTEL since the company has
significant debt, this asset ensures the ability to service the debt, which is
very important.
5. What is the companys least significant asset? Can you draw any conclusions from
this?
While it is the most prominent in terms of the value on the balance sheet - the
Property, plant, and equipment Asset which is more than a 1/3 of the total
Assets is the least significant asset. This is a non-liquid asset and the
company will not be able to recover the amount shown in the balance sheet,
if it were to sell these assets.

REFERENCES:
1. http://en.wikipedia.org/wiki/Intel
2. http://www.intc.com/annuals.cfm
3.