Intel Corp (INTC)

[Windsock]

Re:"My approach is to look at the financial statements of INTC,"

You have totally the wrong approach for determing the contribution of the Banias processor.

Look at Revenue less Cost of Goods to determine the the CASH contribution of the Banias processor. The G&A change is trivial and the R&D cost was expensed yesterday. It is a cloud nine exercise to determine what R&D costs to attribute to the Banias processor anyway.

The cost of a 300 mm wafer is about $2500. The die size will produce about 300 plus good die per wafer. So you end up with about $8 per die. Test-assembly and packaging is about another $15 to maybe $20 for a toal COG of about $30 on the high end. Actual COG is certainly much lower. As Elmer said, probably less than $25.

The CASH contribution of the Banias processor will be very, very good. And Intel manages their business to preserve CASH per Andy Byant in the recent Webcast. And they do that very well.