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

To: SisterMaryElephant who wrote (2206)	7/25/2000 1:08:07 PM
From: kash johal	Read Replies (1) \| Respond to of 275872

Steve, There is an idiotic belief here that AMD counts sales when a completed computer is shipped to an end user. This is wrong : sales are counted when disti sells to end customers or when oems take delivery of product. And Intel treats it sales in the same way. regards, Kash

To: SisterMaryElephant who wrote (2206)	7/25/2000 1:18:43 PM
From: pgerassi	Respond to of 275872

Dear Steve: Definition of "Sold Out": "Sold out" is a different term. This means that all those who order (contract) product has made commitments to buy all the product that is estimated to be produced for the period in question. If overall yields increase and the number is actually much higher than estimated, this could become inaccurate (has happened many times in the past). Since we are dealing with long latencies in the production pipeline (somewhere between 8 to 12 weeks from start of wafer to product shipped to the entities ordering it), it is very possible to be "Sold Out" for a quarter. I remember DEC's LA120 printers being sold out for the next 18 months of planned production (sort of for flash now). In this context, you may equate "sold out" to "all planned production is allocated to first come first serve customers". This is different than "revenue from CPUs" where sold means "actually in use by end users" (and thus cannot be returned without being defective). I hope this clears up your confusion. Pete