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

To: aburner who wrote (5084)	8/15/2000 1:36:14 PM
From: Petz	Read Replies (1) \| Respond to of 275872

ABurner, here's how I interpret the AMD statements: 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. The Comm group was CPD + NPD. So he's saying he still expects 18M of direct sales from before the sale of the division plus 21M of foundry services after the sale of the division. He doesn't say directly what sales he expects from the retained NPD division (I'd had estimate 50M to you earlier), but says these sales will be recorded in the CPG division, and that the total for non CPU revenues in CPG will be about $120M / quarter. It was about 74M in Q2, so the estimated increase (46M) fits my estimate pretty well. So, overall, AMD gets the following revenue from its old Comm division (NPD+CPD) in Q3: 18M (five weeks? of CPD), 0 in Q4 21M (foundry services), 31M in Q4 46M (increased non-CPU CPG group), growth in Q4? ---- $85M total (versus $117M in Q2) I think some of the NPD (Network Products Division) employees may wind up working in an expanded chipset group, at least I hope so. An AMD employee in NPD told me that integrating network products into chipsets was one reason AMD retained the division. Petz