investor relations

When looking at Intel's 2008 Annual Report, I am first shocked at it's length. Weighing in at a whopping 8 pages, the report is shockingly small. Perhaps it is because I have never before seen an annual report and I don't know what to expect. Or maybe it has something to do with the precision and accuracy of the company which is beautifully expressed within the pdf file. Either way, I am intrigued.
The cover of the Intel annual report is somewhat inspiring. It reads "its not just what we make, It's what we make possible." I feel that overall, the report is a marketing piece. It sells the image of Intel throughout -- sleek, efficient and successful. When downloading the official PDF of the report, it seems rather short. However, the information that is included completely sells the company. It uses easy to read charts and graphs to explain complicated financial information, there are letters from the CEO and Chairperson, relevant contact information for the board of directors and also easy to understand highlights for the entire report. For someone who doesn't understand financial, I understand the Intel Annual Report.
After navigating through the Intel Investor Relations section of their website, I found a longer version of the annual report, complete with in depth financial information. However, this section is still relatively easy to understand. Additionally, they have overviews of their products and the company. While much more in depth than the downloadable PDF, this version of the annual report is still appealing to the untrained audience.
The letter from the CEO contains key messages for investors. Paul Otellini expresses his confidence in the company and the strengths that Intel possesses. Despite the fact that he states that Intel reported lower than expected revenue in the 4th quarter, he is consistently proud of the work they do and confident in their ability to "whether the economic downturn". By using statements like "perhaps our greatest strength" and "we have become essential parts of businesses, schools and homes around the world", he conveys his sincere belief in the stability of the company. He is credible, believable and honest which gives piece of mind to investors reading the annual report.
On January 14th of 2010, Intel published a fourth quarter news release. It documents the fourth-quarter results of the company and states the finances and income for Intel. The quote from Otellini is found in the third paragraph down. It is approximately one paragraph long. He states that Intel has an investment in industry leading manufacturing and product innovation. He also talks about how the business has strived during though economic times, and they are eager to continue to bring consumers an expanded set of products.

The quote is inspiring and thought provoking. And while it is clearly well-scripted and strategically planned by a public relations team, it instills confidence in investors. The news release is titled "Intel Fourth-Quarter Net Income $2.3 billion, Up 875%". That alone is overwhelmingly positive, as is the remainder of the news release.
My only criticism for Intel's investor relations is with the letter from the CEO in the 2008 annual report. When CEO Paul Ottelini opens the letter by stating "the global economic climate significantly impacted our fourth-quarter 2008 financial results", audiences are immediately greeted with a sense of failure. Intel obviously did not do as well as expected in 2008, however, by blaming the economy right out of the gate, I feel less than inspired by Intel's progress. Maybe Intel could record Ottelini reading the speech on video and send it via email to investors, as well as uploading it to you tube. I feel that would increase sincerity and relate ability during a difficult financial time for Intel.

Signing off... Literally,
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