Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 213.43

+6.2%

Dec 19 9:30 AM EST

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To: Eric K. who wrote (88137)	9/15/2002 8:25:59 PM
From: ptanner	Read Replies (1) of 275872

Erik, re: "$2.42B in current assets" About 10% of this amount or $236M is in "Deferred Income Taxes" which doesn't sound like a very liquid asset? On their debt obligations the bulk of the Dresden loan was due in 1-3 years (see 2001 Annual Report). The portion due within one year would be included within the Current Liabilities. re: "However, AMD's q2 tang. book and current net worth did not significantly change relative to q1, even though there were no new loans taken, which suggests that AMD is putting off cap-ex spending or is spending less on it than it did in the past. Given that Dresden is mostly outfitted and the 300mm fab isn't costing much yet, it seems likely that actual cash burn is less than the net loss figure." The net plant increased by about $200M (which seems a little high) so I don't think AMD deferred significant capital investments. IIRC they have indicated a continued, fairly level capital outlay of about $800M/year. The capital outlay in 2Q was relatively low, however, and below the depreciation for the first time in recent qtrs. I don't think capital outlay is a place where AMD can defer much and still hope to remain competitive - save today and GONE tomorrow. I don't think there is any spending planned for the 300mm fab JV for the near-term and AMD's role in its financing has not been specified. WRT the small change in the balance sheet from 1Q to 2Q despite the loss I don't recall a solid explanation. There were some references to a currency gain and a shift of about the right magnitude ($178M) in the "accumulated other comprehensive (loss)" line at the bottom of the balance sheet. I have no idea what this represents. I have some concerns about liquidity but believe AMD will be able to arrange something. How favorable it will be to shareholders remains to be seen. -PT

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