Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Yougang Xiao who wrote (82050)	12/5/1999 3:27:00 AM
From: Petz	Read Replies (1) of 1585839

Yougang & KL, <roll some of the profits/sales to next quarter to smooth out the growth.>> I agree this is desirable. Demand can really drop from Q4 to Q1, especially because 3/4 of AMD's chips go to the retail segment. I don't think there is much "wiggle room" on when revenues get recognized -- after all, AMD's hungry customers might not like their shipments being delayed until January. On the expenses side, AMD could probably do some things to raise expenses in Q4 which would lower them for Q1. For examples, pre-paying advertising expenses, and "expensing" rather than capitalizing equipment purchases, which would have the effect of lowering depreciation in later quarters. Petz

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