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Politics : Formerly About Advanced Micro Devices

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To: Petz who wrote (86254)1/13/2000 5:31:00 PM
From: Petz  Read Replies (3) of 1575421
 
Thread, here's what I wrote about "one time charge" on Sunday (follow link after "who wrote" above):

There is one thing Intel can do to obscure a bad quarter -- take a "charge" against earnings. For example, Intel could "write off" most of the development cost for the i820 and report it as a "one time loss." In fact, there's three or four things Intel could take "one time losses" for this quarter.

So, instead ofr reporting a profit of 0.60, they report a profit of 0.64 plus a "one time loss" of 0.04. The accountants can have a field day dreaming up things that qualify to be a "one time loss." Intel will explain that the i820, CC820 redesign costs, RAMBUS subsidies, etc., etc., are only one-time costs that it have now been put behind.


Actually, I'm glad they did this. If the R&D charge is mostly IR&D of acquired companies, then their quarter was really OK, but not great.

Petz
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