Re: A loss rate of 50% of revenue. What type of gross margin is that?
A really, really, bad one.
But it's during the deepest depths of a cyclical industry's worst downturn, that coincides with two major product transitions.
And it's from a company that is fine, in terms of operating capital, even if things stay just this bad for another entire year (which they certainly won't - both internally and externally, things are already getting better).
Meanwhile, the minor line, flash, is coming into the upswing of its product transition, and the major product, CPUs, is 1.5 quarters away from its transition.
If everything goes well (it never, ever, does) AMD would have sales approaching $15 Billion next year, with costs of about $5 Billion, and EPS of $30!
I'd be pretty happy with 1/10 of that. |
