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

To: Windsock who wrote (100850)	3/29/2000 10:46:00 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 1573866

Windsock, RE:"Petz - Re:"Here's why AMD is a screaming buy. Take a look at the table" Your analysis ignores a critical issue. When Dresden starts shipping revenue product then the depreciation for the fab starts. Dresden depreciation will be at least $100 million per Q or about $0.60 per share." Maybe you can fill us in on the exact details between AMD and the German government concerning FAB 30? Thanks, Jim

To: Windsock who wrote (100850)	3/29/2000 10:49:00 PM
From: DRBES	Read Replies (2) \| Respond to of 1573866

re: "When Dresden starts shipping revenue product then the depreciation for the fab starts. Dresden depreciation will be at least $100 million per Q or about $0.60 per share." Did not someone on this thread recently bring up the issue of cash flow as a consideration? That really is one of the criteria employed in putting value on a stock. DARBES

To: Windsock who wrote (100850)	3/29/2000 11:54:00 PM
From: niceguy767	Respond to of 1573866

Windsock: Re: "Dresden depreciation will be at least $100 million per Q or about $0.60 per share." Comment: Where'd you get $100 million per quarter from?

To: Windsock who wrote (100850)	3/30/2000 12:56:00 AM
From: Petz	Respond to of 1573866

Windsock, re:<When Dresden starts shipping revenue product then the depreciation for the fab starts. Dresden depreciation will be at least $100 million per Q or about $0.60 per share.> Where do you get this from???? At the Q4 conference call, AMD estimated the total depreciation for Y2K and total interest expense for Y2K. Here's a quote from JC's summary at jc-news.com Outlook: * R&D up slightly ($650M for FY2k) for Dresden and increasing product/tech development * Q1 R&D up $10-$15 * int-inc about $3M for FY2k (but $1.5M in Q1) * interest expense: $85M y2k ($15M Q1) * Taxes: zero tax rate operations (small tax expense in Q1 for gain on ireland presale * Income FASL: shares +1M per quarter * Cap spending around $800M in 2K (most in Dres) * Depreciation $600M, depending on timing $20M revenue from foundry and other services, per quarter <end quote> Depreciation ended the year 1999 at $130M a quarter, so it only averages $20M more in Y2K Interest expense ended the year at $12M a quarter and $69M for the year, so its only estimated to increase by about $10M starting Q2 (Q1=15M expense, then 20M, 25M, 25M would agree with the above statement. So the total increase in expenses due to depreciation and interest expense starting Q2 or Q3 is only about $30M. Peanuts. Petz