Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 231.83

+1.7%

Jan 16 9:30 AM EST

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To: ptanner who wrote (79430)	5/7/2002 3:01:28 AM
From: pgerassi	Read Replies (2) of 275872

Dear PT: Intel already books the $360 million as "other revenue/expenses" in the I/E statement. They just do not show there the costs. That way they can boost up their profits and not take the hit that AG and many others want to show up in GAAP earnings. But, it does find its way into the book value which has dropped. And I do not exclude AMD from this criticism except they do not show either costs or profits from options. And since the stock is not as profitable, the difference is not anywhere near as large relative to book value as Intel. Even without the normal goodwill that Intel should have written off in the last Q, with the costs of those stock options removed from their earnings, they lost money and it comes close to the amount they dropped in book value. Adding in the expected GW writeoff costs, they lost more than $500 million last Q alone. AMD probably lost about $40 to $50 million with stock option differential costs removed. Their book value is down about $43 million. Scaling by revenue, AMD's losses are smaller than Intel's. Pete

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