<<<And AMD is making money, besides ;^)>>
I am neither long nor short INTC or AMD.
Alot can and maybe should be made about AMD's quarter. I did not listen to the call and have not walked through a yet to be released and unaudited 10-Q.
I, however, would urge people to ease up a bit on the "making money" comments (and I certainly am not singling out Scumbria...I have just spent the last 30 minutes reading the AMD thread!!!).
In this type of business, $1mm (or $10mm, for that matter) in earnings is not necessarily "champagne-time." It is clearly correct in terms of direction, but from an economic standpoint, it can be a bit slippery. With $1mm in after tax earnings, $117mm in Depreciation and Amort., and $321mm in CapEx, it wouldn't seem to me that AMD generated any free-cash this quarter -- though they may in the future -- even assuming the WorkingCap. accounts were neutral.
GAAP EPS is nice, but free cash sustains a business.
I wish AMD and INTC the best of luck in creating the perfect box(i.e., high-performance at a reasonable price -- $2,200 is "reasonable," if it fast enough and reliable) for me to enjoy my Chrome.
--Duker |
