Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (1428)	7/19/2000 8:25:22 PM
From: Petz	Respond to of 275872

John the Feds do not have ONE CENT. AMD did not pay the Feds a penny. The taxes reported in an income statement are not the same as actual taxes, trust me. Petz

To: Road Walker who wrote (1428)	7/19/2000 8:28:44 PM
From: dougSF30	Read Replies (1) \| Respond to of 275872

John, yes, AMD decided to amortize their tax over the last 3 quarters instead of the last 2. The actual tax owed in Q2 was nowhere near 20%. You're simply wrong. Doug

To: Road Walker who wrote (1428)	7/19/2000 8:35:42 PM
From: EricRR	Read Replies (1) \| Respond to of 275872

I've never heard anyone say "it was a "pre-tax" blow out quarter!" The money is gone, the feds have it, get it? John: Apples should be compared to apples. I've never heard a retailer get credit for a blowout 4th quarter because of the holidays. The fundamental fact is that AMD earned much more profit that was expected in the quarter. They will get the credit. Wall street knows the difference, even if "newflash.com" doesn't.

To: Road Walker who wrote (1428)	7/19/2000 10:46:25 PM
From: Joe NYC	Read Replies (1) \| Respond to of 275872

John, I've never heard anyone say "it was a "pre-tax" blow out quarter!" The money is gone, the feds have it, get it? It's not about paying taxes vs. not paying. It is about managing expectations. I don't think AMD owes any taxes yet, but the projection is that in the following 2 quarters, there will be some taxes owed. There could be a scenario that AMD just exhausted the tax credits. Imagine that AMD reported $1.51, and the next quarter it goes up to $2.00. But since the credits have been exhausted, the 34% tax rate applies, and AMD reports $1.28 taxed. Rather than doing it this way, AMD set aside some money as a reserve for future taxes to be paid, in order to create an orderly rising earnings quarter after quarter. What people on this thread have a problem with is that the analysts were guided to expect 0% tax rate, and all their estimates reflect that, so that AMD performance based on the taxed amount looks just OK, not a near blowout earnings that AMD in reality had. I think what complicated things was the sale of the communication division, which will probably generate capital gains for the year, hence the tax credits were exhausted sooner than expected. Joe