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

To: fyodor_ who wrote (41160)	5/25/2001 3:15:19 PM
From: Joe NYC	Respond to of 275872

Fyo, 2H01 could definitely get ugly for AMD. Depending on product timing and Intel's .13µ ramp, either quarter could be the worse. I have a feeling that Q2 will not be pretty either. The lower ASPs and lower flash sales will put a huge pressure on revenue. It can be offset by rising unit sales, but the rise would have to be higher than we can realistically expect. On the financial side, we had some non-recurring income from flash division of 13M, which was 16% of the total, or 6 of the 37 cents. On the plus side, we will have a tiny bit less of the interest expense, since part of the Q2 will be without interest accruing on the convertible bonds. Overall, I think the net income is going to fall to mid 20s in Q2, with teens being a possibility. All this may happen while AMD is within flat to -10% guidance for the revenue, so technically, AMD doesn't have to warn, yet disappoint with the results. Joe