If you look at this data (from marketguide.com), AMD's cash&short-term went down by about $540M last quarter, but their long-term debt went down by about $640M. AMD, as far as I am concerned, was $100M cash-flow positive last quarter.
For Intel, their cash&short-term went down by about $700M, but their long-term debt went up by about $225M. In my books, Intel was a $1B cash-flow negative last quarter! If they bleed at this rate, they will not be able to meet payroll in about 2 years time.
Milan
Intel's Balance Sheet
marketguide.com.
AMD's Balance Sheet
marketguide.com.
Milan, I couldn't get into your links..there is a member login. However, I do have limited access to Market Guide and I have looked at Intel's balance sheet....where I may have encountered the 'funny' accounting that you guys talk about..specifically with their cash and short term investments. I am sure you guys have scrutinized these numbers more closely than I have so if I miss something, don't laugh. ;~))
Last quarter, it looks like yoy Intel's cash and st investments went down by about $3 billion, indicating a $750 million per quarter burn rate. However the balance sheet indicates the company made a profit last quarter so they shouldn't be burning cash. Where did the cash go? I don't have a lot of detail on the balance sheets I am accessing but I can't see the drain....I am sure an accountant can figure it out quickly but I can't.
Having said that, Intel is sitting on a lot of cash..... on $9.4 billion...they could go for over 3 years at what appears to be their quarterly burn rate. In the meantime, AMD is sitting on $1.06 billion, virtually unchanged yoy. But it wasn't until last quarter that Intel put the pressure on AMD. It will be interesting to see what the AMD's and Intel's cash balances looks like at the end of this quarter. Then it will be clearer if AMD is up to a price war with Intel. Like I have said before, I would hate to see the $1 billion go to the price war...it would seem like a waste of cash.
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