Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Joe NYC who wrote (104813)	4/13/2000 3:21:00 AM
From: Petz	Read Replies (1) of 1577793

Jozef, about AssHook's line, "For one, AMD has yet to depreciate the costs of its Dresden manufacturing plant. That should bring down the income figures, said Ashok Kumar, analyst at Piper Jaffray." This was discussed at length in the CC. AMD estimated the total additional startup cost for Q2 at $28M ($14M additional depreciation and $14M in other costs). For Q3 it jumps to $42M. Considering the $28M Q2 number, thats about the increased revenue expected for FLASH MEMORY in Q2, a division which is half the size of CPU's. And its not even counting the fact that total microprocessor unit sales should be flat but ASP's will be up (more Athlon). 28M is a drop in the bucket. His CC question was "how many more Athlons did you make than you sold." (Answer: couple 100K) Doesn't he know that by the end of the year AMD will need to have 1M Athlons in various stages of inventory - distributors, OEM's, on hand, etc - just to meet normal business conditions? BTW, AMD's depreciation is very generous, since actual capital expenditures were not any higher than depreciation, quite unusual for a semi company. Petz

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