Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: jtechkid who wrote (31291)	4/7/1998 7:54:00 PM
From: Xpiderman	of 1571413

AMD said it needs more cash to manufacture K6 processor and continue work on the K7. Currently, there is no evidence that IBM were to make a significant (say 5% of market value of either company ) investment in AMD. So far neither company has filed any notice to SEC to make this kind of investment. AMD has already filed documents with the Securities and Exchange Commission to raise an additional $1 billion through a secondary stock offering or through debt financing. If the secondary stock offering priced at $33, then AMD need to issue 33.3 million additional shares or about 23.4% of current diluted shares, and this will translate to a significant earning dilution in the future. Right now computer manufacturers are starting to choose between Intel's low-cost Celeron, a version of the Pentium II, and AMD's K6 for systems priced at less than $1,000. The choice is particularly critical this time around because the Pentium II is connected to a PC through the same kind of connector that a peripheral card uses. AMD's K6 uses a more traditional but disappearing socket design. Manufacturers are not expected to design low-end systems around two different architectures.

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