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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 217.91+0.9%Dec 5 9:30 AM EST
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To: cruzbay who wrote (200752)6/7/2006 2:33:46 AM
From: Petz of 275872
 
Other than most of the Goodwill, which Sarmad already mentioned, the flash division is the most likely to have any writeoffs. They have been upgrading equipment regularly and are using 90nm, but I doubt a writeoff of that would exceed $1B. So maybe the total Comm writeoff is $3B of the goodwill plus $0.5B of too-high residual book value. I believe they will also writeoff some CPU inventory in some form or another.

$3.5B after 30% tax benefit would decrease EPS by $0.42, resulting in $(0.30) or worse EPS. It would wipe out 10% of shareholder equity.

Petz
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