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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Charles R who wrote (65119)	7/13/1999 5:08:00 PM
From: Joey Smith	Respond to of 1578757

Charles, no doubt about it, Intel definitely played hardball with ASPs in Q2. The "strong 2nd-half" statements might save both companies tomorrow...but for AMD, that just means another day to live on life-support. joey

To: Charles R who wrote (65119)	7/13/1999 5:12:00 PM
From: kapkan4u	Read Replies (2) \| Respond to of 1578757

<Chuck - re: And the "interest and other income" category went up by about $150M - a good $50M more than I thought they would put in that category AND they still came up 2 cents shorts from the already lowered 53 cents estimate! > Good point. CG is starting to sound like Paul's impersonation of Sanders: Strong second half is just around the corner. Kap.

To: Charles R who wrote (65119)	7/13/1999 5:16:00 PM
From: Yougang Xiao	Read Replies (2) \| Respond to of 1578757

Chuck, Re Intel Q2: 1. Contradictory Statements: Expect Q3 to be up SLIGHTLY from Q2, but Expect a strong 2H. This does not translate, unless, Q4 will explode. 2. Interest and other income: 290 Millions; after 33% tax, you get 195 millions divide that by 3446 millions of share outstanding, you get roughly 5 cent per share. The real EPS is only 46 cents per share.

To: Charles R who wrote (65119)	7/13/1999 5:21:00 PM
From: Timothy Liu	Respond to of 1578757

> It cost Intel $600M+ to compete with AMD (and CYRX) last quarter > (IABG profits from Q1 - profits from Q2 = $2,944M - $2,305M = $639M). No you are wrong. intel.com Your 'profit from Q2' include interest income but your 'profit from Q1' does not. It is more like 2637-2320=317million. Look at Q1-Q2'97 and Q1-Q2'98 can you conclude it is not just a seasonal thing? I see for Interest & investment income you are comparing with Q2 last year. But sequentially it is actually lower than last quarter (290M vs 347M or about 1.5cents/sh) probably due to less selling of investment.

To: Charles R who wrote (65119)	7/13/1999 5:22:00 PM
From: Tenchusatsu	Respond to of 1578757

<It cost Intel $600M+ to compete with AMD (and CYRX) last quarter> Sorry, just because Intel has a lower profit in Q2 than in Q1 doesn't mean that all of that lost profit is due to competition. Historically, Intel's Q2 is always weaker than Q1 in any year, and that has little to do with competition. At least Intel thinks their margins will be a little higher than previously forecasted. Intel thought margins for 1999 would be 57%. Now that both Q1 and Q2 is showing 59% margins, Intel expects 60% for the entire year, meaning that Q3 and Q4 may be demonstrating 61% margins. Either cost cutting at Intel is going better than expected, or Intel is going to ease up on the pricing pressures. The second possibility may be good news for AMD. Tenchusatsu