Intel Corporation (NASDAQ: INTC) is among many of the established companies which has filed its annual report or 10-K with the SEC. These reports are almost always long and boring and unfortunately go unread by most investors. There are almost always some hidden data points in the annual reports that investors should know but rarely take the time to find. Not all points are critical and by no means should these all be considered only as bad points.
The Ultra-Mobility Group, the current hot-zone of the processor market… Intel noted, “In 2010, we introduced an Intel Atom processor-based platform that provides significantly lower power consumption compared to previous-generation Intel Atom processor-based platforms. The new platform is designed for a range of computing devices, including high-end smartphones and other mobile handheld products.”
Shrinking its processor technology… Intel noted, “As of December 25, 2010, the majority of our microprocessors were manufactured on 300mm wafers using our 32nm process technology. In the second half of 2011, we expect to begin manufacturing microprocessors using our 22nm process technology.:
Flash alert… Intel’s NAND flash memory products are manufactured by IMFT, a NAND flash memory manufacturing company that it formed with Micron Technology, Inc. (NASDAQ: MU). As of December 25, 2010, Intel has committed to purchase 49% of the manufactured output of IMFT, and that assembly and test of NAND flash memory products is performed by Micron and other external subcontractors.
Current Customer Concentration… Intel’s current mix is still largely PC and server-oriented. In 2010, Hewlett-Packard Company (NYSE: HPQ) accounted for 21% of its net revenue (Versus 21% in 2009 and 20% in 2008), and Dell Inc. (NASDAQ: DELL) accounted for 17% of net revenue (versus 17% in 2009 and 18% in 2008). The company noted that no other customer accounted for more than 10% of its net revenue. In short, 38% of sales were from just two PC and IT vendors.