Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 217.53

+1.5%

Nov 28 9:30 AM EST

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To: cruzbay who wrote (193954)	4/16/2006 7:25:41 AM
From: brushwud	Read Replies (2) of 275872

“Previously the company had guided for depreciation to be $825 million for the year and that this number would be somewhat front-end loaded. This caused analysts' estimates to be in the range of $200-225 million for depreciation in Q1, or approximately $38.5 million higher at the mid-point than what AMD reported. This delta is the equivalent of 8 cents in EPS,” he said in a report. This is more evidence that depreciation is actually ramping and it's the delta that is front-end loaded. So the analyst totally missed this and jumped to the mistaken conclusion that EPS was inflated due to slower expansion of capacity than previously planned, implying decreased confidence by management in its ability to utilize the increased capacity.

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