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Politics : Formerly About Advanced Micro Devices
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To: Gary Ng who wrote (53034)3/21/1999 3:45:00 AM
From: Mani1  Read Replies (3) of 1583406
 
Gary, Re <<A quick look at the result of AMD from the time the first K6 is available(April 97) till K7 will be available(Q299), it seems that K6 is losing money.>>

I think a more correct phrase is that "...the time the first K6 was available(April 97) till K7 will be available(Q299), AMD (NOT K6) is losing money."

Gary, AMD as a whole lost money. Their over all cost exceeded their revenues, that's all. That cost includes over-head, G&A and R&D (which paid for the development of K7) among other items. Each K6 sold, cost about 30% (of course this number changes all the time) less to make than the price AMD receives for them. AMD has maintained a positive GROSS margin on its CPU line, just not enough of the margin to result in positive NET margin (to pay for every thing else and still make money).

Mani
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