Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 215.33

+0.1%

12:41 PM EST

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To: jjayxxxx who wrote (83050)	6/20/2002 1:38:23 PM
From: wanna_bmw	Read Replies (1) of 275872

JJ, Re: "It's clear that AMD may have to reset the bar on costs. Under a restructuring planned last fall, AMD reduced its break-even point to slightly below $900 million in revenue. But Rothdeutsch predicts demand will stay below $800 million until the end of next year. Rothdeutsch estimates AMD will have about $1 billion in cash by the end of June after spending $250 million on debt and other capital expenditures in the second quarter." If Rothdeutsch is correct, then AMD will have zero cash before they could make a profit - at least with their current cost structure. But I guess that's his point. What would AMD have to do to lower costs by another hundred million dollars or so. They would certainly have to scale back on R&D and expansion, wouldn't you think? I doubt Intel could weather such a long drought, either. I certainly hope the market picks up sooner than this. wbmw

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