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Politics : Formerly About Advanced Micro Devices

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To: Bob Howarth who wrote (38598)10/7/1998 10:59:00 AM
From: jonpcar  Read Replies (1) of 1575610
 
Question: From the AMD press release today......

>The company, based in Sunnyvale, Calif., also said that it plans to >step up in research and development spending in the fourth quarter by
>about $20-$25 million, related to its joint venture with Motorola >Inc. (MOT - news) for developing copper manufacturing process
>technology.

This is about $0.15/share. Does this affect the bottom line of the stock earning/share and if so will AMD be able to make this up?

Here is the lead sentence of the article.......

>Advanced Micro Devices Inc (AMD - news) said that it expects to >report a profit in the fourth quarter, due to the strong sales of its >K6 family of processors, amid a strong PC market.

While I (and everyone else) am thinking that Q4 profits are a slam dunk......I sense caution in the statement and other statements in the article (''The worst is behind us,'' Sanders said, when asked about the general semiconductor industry slump. ''Although we don't see a general upturn, I don't think we are in for a worse environment.'').

Its as if the article was released to mute expectations for Q4. I don't think the Street will like anything other than stellar results (even if they are spending profits for future R&D returns).

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