Intel Corp (INTC)

[wbmw]

Dew thanks.

I just received the note from Spokeshave. Incidentally, given my ratio of revenue over cost of sales, TMTA's still ends up at 22%. That makes my previous points just as valid.

Also, you need to look at TMTA's financial statement.

http://biz.yahoo.com/bw/021016/160604_1.html

Net revenue                    $6,443    $5,027     $18,129   $34,129 
 Cost of sales                   5,296     5,377      14,332    21,653 
                            ----------- --------- ----------- --------- 
 Gross margin                    1,147      (350)      3,797    12,476 
 Operating expenses 
   Research and development     13,707    17,029      50,971    51,388 
   Selling, general and 
    administrative               6,255     8,776      22,926    26,625 
                            ----------- --------- ----------- --------- 
        Total operating 
         expenses               19,962    25,805      73,897    78,013 
                            ----------- --------- ----------- --------- 
 Operating loss                (18,815)  (26,155)    (70,100)  (65,537)

It looks to me as if cost of sales (variable manufacturing costs) are separate from fixed operation expenses. The cost of sales is first subtracted from the revenue, followed by the fixed R&D and administrative costs. Cheers,

wbmw