SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Bill Jackson who wrote (63337)6/25/1999 12:31:00 PM
From: kash johal  Read Replies (1) | Respond to of 1572373
 
Bill,

Re:"What do you mean 'starts depreciation'? "

Its basically an accounting issue as depreciation hits the P/L.

Once they start actual production the company will have to start depreciating the fab investment. My "guess" is that will add $50M-70/qtr to their breakeven requirements.

Thats one reason not to run a fab at low capacity - the fixed costs kill you.

Regards,

Kash