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

To: Paul Engel who wrote (2129)	7/25/2000 7:08:12 AM
From: Petz	Read Replies (1) \| Respond to of 275872

Paul, re:<The value of $6,760,000,000 - for whatever referral Intel mentions - is only $198 Million different. So how does that affect a $3.1 BILLION Profit ?> From Intel's earnings statement: In addition, "all other" includes certain corporate-level operating expenses (primarily the amount by which profit-dependent bonus expenses differ from a targeted level recorded by the segments) and reserves for deferred income on shipments to distributors not allocated to operating segments. Adjusted for this distributor deferral, IAG revenues would be approximately $6,760 million in Q2 2000, $6,650 million in Q1 2000 and $5,850 million in Q2 1999. Accordingly, "all other" revenues would be approximately $1,540 million in Q2 2000, $1,340 million in Q1 2000, and $900 million in Q2 1999. To answer your question - it reduces IAG's operating profit by 150 million by reducing the top line by that amount. But more importantly, the statement above indicates that part of Intel's costs in the IAG group are actually attributed to the "other" group. Intel is 80% IAG, therefore, "certain corporate level operating expenses" shouldn't be attributed to the "other" part of the company. Since there's not even an estimate of how much cost is transfered from IAG to OTHER, the profit of IAG is quite meaningless. Dan's comment about estimating Intel's ASP being lower than he calculated is right-on. Why does Intel even bother reporting profits for its two main divisions seperately if its going to mix up the costs? Petz