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To: niceguy767 who wrote (2569)	7/27/2000 6:54:38 PM
From: Pravin Kamdar	Read Replies (3) \| Respond to of 275872

Anyone know how much profit the comm division was contributing? Can we assume that the increase in Flash in Q3 will cover the loss from the comm group and Dresden capitalization and depreciation? If we make this simple assumption, and run a few numbers, assuming a blended ASP of $97 in Q3 and $105 in Q4, we get additional profit in Q3 and Q4 from processors of (assuming a gross margin of 48% and a 20% tax rate): ($97 * 7 million units) - ($93 * 6.3 million units) * 0.48 * 0.80 / 179 million shares = additional $0.20 per share over Q2 ($105 * 9 million units) - ($97 * 7 million units) * 0.48 * 0.80 / 182 million shares = additional $0.56 per share over Q3. So, Q3 = $1.41 / share. Q4 = $1.97 / share. This gives $5.74 per share for the year, or a little over $1 billion. Pravin.