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

To: Road Walker who wrote (34733)	4/3/2001 6:23:35 PM
From: brushwud	Read Replies (1) \| Respond to of 275872

Interesting that this comes along before earnings. I wonder if AMD is setting up expectations for a disappointment on the flash side of the business. Or whether there's a big fat ALA receivable on the April 1 balance sheet for which a reserve was entered this afternoon which will hit Q2 earnings. But suing a customer doesn't seem like a substitute for an earnings warning.

To: Road Walker who wrote (34733)	4/3/2001 6:31:05 PM
From: andreas_wonisch	Read Replies (3) \| Respond to of 275872

John, Re: I wonder if AMD is setting up expectations for a disappointment on the flash side of the business. Hard to tell. The Alcatel deal was valued $300 million over two years (see amd.com, funny that it was announced exactly one year ago), so this would be a shortfall of up to $37,5 million, assuming Alcatel bought nothing in Q1. But it's more realistic to assume that these problems with Alcatel developed over several months´(that's already the wording in the PR), so AMD already knew about that for some time and could base guidance on that. And since they also emphasize in the press release that there are no problems with all the other agreements, I doubt that this is a hidden warning. Andreas