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Politics : Formerly About Advanced Micro Devices
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To: RDM who wrote (51809)3/7/1999 8:52:00 PM
From: Elmer  Read Replies (1) of 1572377
 
Re:: "Book to Bill ratio is an invention of the chip makers. They average revenue for booking and billing through the trailing three month period. Exchange rate fluctuations and unit price can have major effects in this book to bill ratio number. Frequently the shipped units are increasing but the book to bill ratio tanks due to severe pricing competition. Particularly in cases where chips are pinout compatible the pricing may fluctuate severely over just a few months. A change in component wholesale cost of ten times during a three month period has been seen many times in the semiconductor merchant chip markets. Thus the chip makers may be increasing number of parts shipped by a lot, but get less total dollar revenue for them."

I have heard this criticism before and I understand that BTB doesn't carry the weight it once did.

EP
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