Intel Corporation Annual Report 1968
1968 Intel Financial Statement
The Board of Directors and Stockholders Intel Corporation
We have examined the accompanying balacnce sheet of Intel Corporation at December 31, 1968 and the related statement of operations and deficit for the period from July 18, 1968 (date of incorporation) to Decmber 31, 1968. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the statements mentioned above present fairly the financial position of Intel Corporation at December 31, 1968 and the results of its operations for the period from July 18, 1968 (date of incorporation) to December 31, 1968, in conformity with generally accepted accounting principles consistently applied.
At the present time, the Company’s operations consist only of research and development of certain new semiconductor devices. Accordingly, no sales were recorded in the period ended December 31, 1968.
6% convertible subordinated debentures
In October 1968, the Company issued $2,500,000 of 6% convertible subordinated debentures, due October 1, 1978. The debenture holders, at their opinion, are entitled to convert the debentures into shares of the Company’s common stock at a conversion price of $5.00 per share, subject to adjustment as provided in the debenture agreement.
Interest is payable semiannually commencing October 1, 1971. No interest is payable with respect to a debenture for the period from October 1, 1968 through September 30, 1971 unless that debenture is not covered prior to October 31, 1978. On the assumption that all debentures will be converted, no interest expense has been accrued for the period ended December 31, 1968.
The Company, by payment of a redemption premium, may redeem the debentures at any time after October 1, 1969. Beginning in October 1973, the Company is required to contribute $250,000 per year into a sinking fund for the purpose of making such redemptions annually.
Read the full 1968 Intel Financial Statement.