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

To: Maverick who wrote (74523)	10/7/1999 2:12:00 PM
From: Charles R	Respond to of 1572795

<Cash dropped 42% to $377M.AMD used $1.5B to make K7.Where's money for K8 ? Excerpts of AMD Chipping Away Its Losses By Brian Graney (TMF Panic) > This is a well written article and highlight the issues facing AMD very well. The one problem I see is that it talks about current/past problems and does not address the impact of what is being done to fix this. Three significant things from yesterday's conf call: 1. Assuming AMD can ship 800k Athlons in Q4, the cash flow will start creeping back up again. (incremental 600ku @ $250 should generate in excess of $100M in cash assuming approx $100 per unit in marginal costs) 2. Any kind of Dresden deal (even an unfavorable one) would materially drop the burn rate. 3. Selling off the Comms divison should raise close to $500-1B (@2-4x sales which is extremely low for the comms guys). Expectations are being set for Q1/Q2 of next year but I would be surprised if the discussions haven't already begun. Other smaller things that would help are that were covered in the conf call are: - Pushing out expenses - starting flash in Fab25