Frank-- You are really being a total arse. Kash, chic, I, and several others were disappointed by the report and posted accordingly.
The report was not "weak" as you assert, however. AMD had a 20% profit margin even with a $90 asp on processors. I would describe those margins as extremely impressive, and reflecting very favorably on AMD's cost structure. The explanation for the low asp-- the lack of an integrated graphics chipset forcing Durons to be at least partially discounted to keep system cost down at low price points-- is both plausible and temporary. This lack of chipsets was not exactly a surprise either, though it is, of course, AMD's fault. I believe it also explains the purging of at least one of the managers in the last few months.
The report was disappointing due to the delay of SMP to 1H 2001, the delay of corporate penetration to 1H, 2001 and, as mentioned, the lack of a complete low-end solution. Then again, the stock is trading at about 10 times trailing earnings, the stock is 55% off its 52-week high, and the company maintains a substantial performance lead over a company thirty times it size. It also has many exciting initiatives, which although slightly behind schedule, are substantially more interesting than those of its competitors.
-Eric |
