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

To: Ali Chen who wrote (48167)	7/18/2001 7:40:49 AM
From: Mark A. Forte	Respond to of 275872

On the contrary. If only I'd seen a post like this in May, I would have chucked this beast and moved on.

To: Ali Chen who wrote (48167)	7/18/2001 7:55:28 AM
From: Road Walker	Respond to of 275872

Ali, re: Really? If you write off IAG expenses into COMM or other businesses, would not IAG look much better as a business, with whopping 47% margins? The following is from the 1st quarter report. In addition, "all other" includes certain corporate-level operating expenses, including a portion of profit-dependent bonus expenses that are not allocated to the operating segments. Prior to 2001 the majority of the profit-dependent bonus expenses were kept at the corporate level, but as of the first quarter of 2001, the majority of these expenses have been allocated to the operating segments. Information for prior periods has been restated to conform to the new presentation. Prior to the first quarter, they had actually kept some of the "other" expenses OUT of the "other" results. The language is ambiguous enough that you can decide, in your convoluted logic, that Intel is somehow trying to mislead by shifting corporate expenses around to different segments. The probability is that Intel is expensing stuff as accurately as they can, that they have more important things to occupy their time. Following is from the 2nd quarter report: Gross margin percentage in the third quarter of 2001 is expected to be 47 percent, plus or minus a couple of points, down from 48 percent in the second quarter, primarily due to an accelerated desktop processor roadmap in the second half. Intel's gross margin expectation for the full year 2001 is 49 percent, plus or minus a few points, lower than the previous expectation of 50 percent, plus or minus a few points. Gross margin percentage varies primarily with revenue levels, product mix, product pricing, changes in unit costs, capacity utilization, and the timing of factory ramps and associated costs. These are company wide** gross margins, and include the "other" operating segments, 19% of the business that is losing over $1 for each $1 sold. Imagine what the gross margins would be as a stand alone number from IAG. Taking away the "other" groups, Intel is the low cost producer. Including the "other" groups, and their drag on gross margin, I don't know. How that plays out from a competitive perspective is subject to interpretation. John