Advanced Micro Devices - Moderated (AMD) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 203.14

-0.8%

Jan 9 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: niceguy767 who wrote (4822)	8/13/2000 12:38:26 PM
From: aburner	Read Replies (1) of 275872

niceguy, somehow your calculations must be flawed; I'm just not sure how to prove it. Hm, let me try some kind of a backward approach. Please take a look at AMD's "CONSOLIDATED STATEMENTS OF OPERATIONS" at amd.com . Now let me look what your Q3 EPS of $2.56 would imply. First of all I'll calculate income before taxes by multiplying EPS with 175M shares, that would mean $448M. Moving up in the table and to simplify matters I'll skip interest income and expenses and assume that this is also the position listed as operating income. Add to that R&D and MG&A costs (I'll assume for now they'll stay flat in this Q) of $155M and $152M respectively. The resulting $755M represent the gross margin which was about 47.6% in Q2. According to the Q2 CC AMD expects gross margin at "... 47 per cent +/- a few points". Once again to simplify matters I'll keep with the 47.6% number which means net sales of $755M/0.476=$1586M. Next I'll assume the CPG sales account for 65% in Q3, that would come to $1030M from which I subtract $120M (embedded, chipsets, networking) leaving $910M for CPU sales. Divided by 7M CPUs that would mean an ASP of $130 which is way off of AMD's expectation of breaking into the $100+ ASP range in Q4! Kind regards, ABurner.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next