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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: jackrabbit who wrote (138828)	7/8/2001 2:30:56 PM
From: Dan3	Read Replies (2) \| Respond to of 186894

Re: AMD loans Go to page 42 of this pdf: amd.com There you will see that the Dresden loan agreement between AMD and the State of Saxony covers loans made by a consortium of banks and includes $156 million in interest subsidies that apply to loans from that consortium of banks. That $165 million in payments by Saxony is used to knock down the rate paid by AMD. But you continue to miss the point - whatever their leasing, borrowing, etc. activities include, AMD's current costs reflect the cost of their plant. Here's another perspective: Net cash provided by financing activities 338,218 50,909 Effect of exchange rate changes on cash and cash equivalents (1,362) 2,468 ---------- --------- Net increase in cash and cash equivalents 464,319 86,029 Cash and cash equivalents at beginning of period 591,457 294,125 --------- --------- Cash and cash equivalents at end of period $1,055,776 $ 380,154 For the quarter, they show a net cash increase of $338 million from financing activities, and a total cash increase of $464 million. They made all their debt payments, all their lease payments, and didn't increase their undepreciated plant. Total AMD long term debt including lease obligations and borrowing is up $225 million, short term debt actually dropped by $62 million, and cash is up by $464 million for the quarter. Q2 will be tougher, but for Q3 and Q4 AMD has mobile sales to boost cash flow. Now look at what happened to Intel's cash position in the same period, and how they deferred recognizing those costs in their income statement. Total current assets 18,739 21,150 Property, plant and equipment 30,774 28,253 Intel has on heckuva cash cushion, but they are burning it up at one heckuva rate. Q1 was a quarter when they still had monopolies on mobile and SMP chips and before the meltdown in ASPs. Their investment costs will be dropping, but so will their earnings. Dan