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

To: Pravin Kamdar who wrote (3560)	8/3/2000 2:44:55 PM
From: crazyoldman	Read Replies (4) \| Respond to of 275872

Pravin, Has this been posted? clearstation.com Here is the comment I just received from Toni Beck at AMD regarding the Cisco flash memory shortage rumor: "This is stupid! Cicso said that Cicso's flash shortage has eased. Of course it has! AMD and Cisco have a long-term flash agreement. We are supplying them. They are getting more product than in previous quarters. That is good news for Cisco and good news for AMD. Cisco was trying to offer positive guidance for its current quarter by stating its supply of flash has improved. It was perceived as bad news for its suppliers (AMD). AMD said its flash would increase by 70% in the current year. How do you think that will happen? We sell more to the customers who need it! Hence, their shortages ease!! Instead of reading the RUMOR below, you should read Cisco's actual comments in the context in which they were made. I cannot believe how everybody just hangs on every single rumor and pays absolutely no attention to the positive outlook that AMD has offered. Our guidance remains the same as expressed last week." fwiw... Kindest regards, CrazyMan

To: Pravin Kamdar who wrote (3560)	8/3/2000 3:53:25 PM
From: david_langston	Read Replies (2) \| Respond to of 275872

Pravin, By definition, no. AMD does not record a sale until it is sold to the end use That isn't quite correct. If AMD sold to a big OEM (say HP through HP's contact box assembler) 300K Duron units in the last two weeks of Sept. and the boxes with these units didn't end up on retailers shelves or into the retailers distribution system until Nov. 1, the 300K Duron parts would still appear as part of the Q3 revenues. Now all the big OEM's may have stream-lined operations as you said and this hypothetical situtation may no longer be valid as typical of OEM's operations, but the revenue recording aspect is correct. If AMD had shipped these chips to some distributor instead for eventual resale to a screw-driver shop during their Christmas-season build period, then you are correct about the recording of revenue. Dave