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

To: kapkan4u who wrote (104015)	4/11/2000 8:11:00 PM
From: steve harris	Read Replies (3) \| Respond to of 1576229

Kap, re:"Assume $1.1B revenue with Q4 break-even ($900M) and 50% margins. We get $200M divide by 2 divide by 150M shares equals $.66 EPS." I'm sure it's been discussed before, but that 200million extra in revenue has costs involved, does it not? steve

To: kapkan4u who wrote (104015)	4/11/2000 8:28:00 PM
From: niceguy767	Read Replies (1) \| Respond to of 1576229

kapkan4u: Re: "Assume $1.1B revenue with Q4 break-even ($900M) and 50% margins. We get $200M divide by 2 divide by 150M shares equals $.66 EPS. To get $1.00 EPS AMD will need about $1.2B. Comment: There is a distinct possibility that incremental margins are greater than 50% if non-Athy and Athy ASP's increased and flash prices in their Q1 scarcity rose...Low end is $0.70 and high end is $1.20 according to my formulations..Any eps above MOT's ($124, and will rebound tomorrow) $0.59 could easily result in a significant AMD upward price revaluation!

To: kapkan4u who wrote (104015)	4/11/2000 8:41:00 PM
From: Charles R	Read Replies (1) \| Respond to of 1576229

Kap, <Assume $1.1B revenue with Q4 break-even ($900M) and 50% margins. We get $200M divide by 2 divide by 150M shares equals $.66 EPS. To get $1.00 EPS AMD will need about $1.2B.> It is even better than this. The incremental revenues from last quarter (~$100M) will be at a gross margin of 70-80% (70% is a pretty conservative number given the Athlon/K6/Flash mix I think we have - 80 is a stretch). Add to this the reduced marketing expenses (per Q4 guidance). Viola! That does it. Chuck