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Politics : Formerly About Advanced Micro Devices

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To: ajbrenner who wrote (115262)6/10/2000 10:27:00 AM
From: Joe NYC   of 1570972
 
ajb,

Since AMD will be sitting on at least 1.5 billion in cash after Q2 earnings is there any possibility that they could pay off enough of their debt that it would offset any tax liability?

The only way to reduce the tax burden is with lower net income. Interest payments do lower the net income, but further repayment of debt does not.

As far as debt and cash, it is always good to have low debt, but you have to consider if you could get a better return on the money if it is invested in the business, rather than in acceleration of debt retirement.

There are number of areas where AMD needs to invest more:
- bringing Dresden to full 5000+ wafer per week capability
- design of high quality chipsets
- design of a single-cpu with integrated northbridge for single low end / mid-range, single CPU systems. This CPU could just have the LDT interface (plus the pins for memory access)
- software and driver support
- process technology development
- building additional fabs
- R&D

Joe
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