Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 249.66

+7.6%

3:59 PM EST

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To: wanna_bmw who wrote (85238)	7/17/2002 7:21:43 PM
From: Robohogs	Read Replies (1) of 275872

Nice comments - probably what is happening. I must add that reducing the number of chips coming out to as to keep inventory flat will increase per chip manufacturing costs as overheads and labor are divided into fewer chips coming out. Probably reason for such a big loss. Even selling only 6 MM chips (down ~ 2 MM), breakeven was at $900 MM ($600 MM revenue + 300 MM loss), implying higher breakeven if they sell 7-8 MM chips (or very little in way of variable costs). BTW, based on your $720 MM number, they should lose $180 MM plus incremental cost of the extra chips less the reduction in costs due to 130 nm. There will be no real tax savings as the total taxes paid over the last three years was $130 MM. They already put in for refunds of $30 MM in Q1, implying no more taxes to recover (or very little). Look at officially filed cash flow statements in 10k and 10q. At the very bottom of cash flow statement is a section detailing actual cash payments. Jon

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