Intel Corporation (NASDAQ:INTC) posted third quarter results a few days ago, wherein finished goods inventory dropped 4% successively and accounted for 39% of total inventory, which is the lowest level in eleven quarters. Free cash flow of the company came in at $2.87 billion, which is the highest level in the previous three quarters, according to a report from Baird Equity Research by analysts Tristan Gerra and Ting Wang.

intel

Contributions from large clients

Intel Corporation (NASDAQ:INTC)’s three largest customers contributed 44% of net revenue in the first nine months of fiscal 2013, from 42% in last year’s corresponding quarter.  Hewlett-Packard alone contributed 17% of net revenue, a drop from 18% last year. Dell added 15% to  net revenue, an increase of 14% from the comparable period of the previous year. Lenovo, the third largest contributor, added 12% to the net revenue—a rise of 10% from the previous year.

Intel Corporation (NASDAQ:INTC) recorded cash flow from operations (CFO) at $5.73 billion, the second highest level in the last seven quarters. Free cash flow came in at $2.87 billion, a three-quarter high. Free cash flow on per share basis was recorded at $0.56.

Inventory numbers for Intel

Intel Corporation (NASDAQ:INTC) witnessed a drop in its finished goods inventory of 4% sequentially and accounted for 39% of total inventory, the lowest level in eleven quarters. Also, total inventory was flat-ish in the third quarter of 2013. The company reported an increase in its work-in-progress inventory by 2% quarter on quarter, and accounted for 50% of total inventory. Raw material inventory gained 4% quarter on quarter, and accounted for 11% of total inventory, which remains in line with the second quarter of 2013.

In the third quarter of fiscal 2013, Intel Corporation (NASDAQ:INTC) bought back 23.6 million shares and is still left with $3.7 billion of repurchase.

Pending legal dispute

In May-June 2011, Intel Corporation (NASDAQ:INTC) was one company among seven other technology firms in which former employees filed a antitrust class action complaint against their former employees regarding mishandling of employment opportunities and compensation. In September 2011, plaintiffs filed a consolidated modified complaint only to get dismissed by the court in April 2012. The trial will be carried forward in May 2014 to decide on whether the seven companies breached the Sherman Act or Clayton Act. Intel has not given any guidance over the probable losses that it can face.