Tuesday, December 04, 2012

Intel Stockholders Lose - But Otellini Retires a Winner

During Paul Otellini’s tenure as CEO - from the second quarter of 2005 through the third quarter of 2012 – there is no denying Intel (INTC-$19.50) achieved notable financial successes: cash generated from operations of $107 billion; annual revenue growth from $38.8 billion to $54 billion; and, cash dividend payments totaled $23.5 billion.

Digging deeper into the storied legacy of Paul Otellini, however, we find a man who might have been too myopic in transforming manufacturing – both in operations and cost – in his quest for profitable growth. According to Bernstein Research analyst Stacy Rasgon, "Intel’s phenomenal revenue growth over the last couple of years has been out-of-sync with many data points in PCs. Indeed, we find that most of Intel’s growth in PC revenues was not really due to outsized unit growth, but instead from significant upside to pricing.”

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

1 comment:

Baby Tots said...

Hi There, I just spent a little time reading through your posts, which I found entirely by mistake whilst researching one of my projects. Please continue to write more because it’s unusual that someone has something interesting to say about this. Will be waiting for more!