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

To: Petz who wrote (5025)	8/15/2000 3:56:54 AM
From: aburner	Read Replies (1) \| Respond to of 275872

Petz, re: I think you should assume that more of the Comm group revenues will remain. AMD only sold a little over half of it. ... which probably leaves $50M (Q3) and $55M (Q4)for the remainder of Comm. I think I've correctly reflected that by taking into account the following snippets from the CC: "... From an operating point of view, we anticipate about $18 million of CPD revenue, plus another $21 million of foundry-services revenue in Q3, as we switch from CPD, to foundry for CPD. In Q4, we'll only have the foundry-services revenue, which will be about $31 million for the quarter. ... This is the last time we will report CPD. As Fran said, product sales from Q3 will be recorded only for July. Going forward, ongoing services for CPD will be recorded combined with the present services for Vantis, under the heading of foundry and services. The two combined will run in the $50 million range per quarter. ... In the future, embedded processors (the EPD division), chipsets (PPD division), and networking products (NPD) will be reported within the Computer Products Group. These three divisions in their aggregate are about $120 million-per-quarter product line. ..." Income from Foundry + Services and the NPD (which was formerly part of the CPD) should account for the $50M-$55M you suggest. However I realized that I made a mistake with my argument of "... we will "lose" Comms sales of about $80M which would account for an additional EPS of $0.18. The resulting EPS of $1.52 would mean an increase QOQ of more than 25%. Not bad! ...". That should read then: " ... we will "lose" Comms sales of about $60M which would account for an additional EPS of $0.13. The resulting EPS of $1.47 would mean an increase QOQ of more than 21%. Still not bad. :)". Thanks for pointing that out. ABurner