Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 215.65

+0.3%

Dec 29 3:59 PM EST

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To: combjelly who wrote (197456)	5/18/2006 11:46:41 AM
From: Sarmad Y. Hermiz	Read Replies (1) of 275872

I expect that the progression of work-in-process is orderly and not lumpy to the extent you assumed. The testable conclusion here is that in order to have higher revenue in q3, there will have to be significantly higher inventory in q2, both in finished goods form and WIP form. We'll wait and see where inventory is at end of q2. The obvious idea here is level of finished goods and WIP at end of a quarter is the supply constraint on how much can be sold next quarter. Nearly all of a quarter's revenue comes from wafers that were started in the previous quarter. By the way, I never said or implied AMD is in trouble due to inventory. I do think fab 36 is ramping slower than what some here expect (for instance niceguy saying fully ramped by year-end '06). I have no idea whether that is due to caution to avoid over-supply, or some technical reason.

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