Steve, while I agree with you that 7 cents is a joke for Q1, I did not prove your point, quite the opposite. You should relisten. He did not dispute the figures he had previously given me of fab depreciation charges of $600,000 per month, which is more than a nickel a quarter, but clearly said that they are built into inventory costs. Therefore, he said that we would not see the benefit until the burdened inventory
is sold and new chips from Milpitas being sold without the fab depreciation charge burden. I conclude that only Milpitas wafer starts in 2000 will be unburdened.
I was glad to hear that we will see earnings reported without taxes for the time being. Of course, if a buyer for big bucks for the fab could be found, I could live with them using up the NOL's and paying taxes <ggg>.
My current positive "big picture" view after the call is expressed in my recent post on YAHOO:
messages.yahoo.com
I intend to redo my model for the new information.
By the way, did you interpret Raphie's comment on the stock price and further enhancing shareholder value as a "don't sell yet" comment, as
I did? |
