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Politics : Formerly About Advanced Micro Devices
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To: Petz who wrote (27034)12/21/1997 10:55:00 AM
From: Time Traveler  Read Replies (1) of 1573571
 
Petz,

Depreciation, R&D, and G&A before gross margin:

That is a very good point you have brought up. Your estimation of $1,500 to $2,000 is quite low (at least for AMD) however.

From Lehman Brother's quarterly report for AMD (courtesy of Albert Kovalyov, our good friend), it shows for K6:

- Revenue of $150M with net lossgain of $30.7M
- Cost including R&D and G&A of $150M + $30.7M = $180.70
- Cost of goods = $106.3M, a percentage of total COG / total cost

Let's say:

- average wafers per week = 2,500

Then the cost per wafer is:

$106.3M / 2,500 / 13 = $3,300

You may argue that the capacity is running higher than 2,500 wafers per week, then the yield to satisfy the boundary condition of 1M pieces is even embarrassingly lower.

Now please continue.

John..
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