Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Milan Shah who wrote (52074)	8/22/2001 6:20:34 PM
From: wanna_bmw	Read Replies (2) \| Respond to of 275872

Milan, Re: "For Intel, their cash&short-term went down by about $700M, but their long-term debt went up by about $225M. In my books, Intel was a $1B cash-flow negative last quarter! If they bleed at this rate, they will not be able to meet payroll in about 2 years time." Intel is also spending $7.5 billion in capex this year to be put towards manufacturing and expansion that will make them all that more competitive next year. Consider that money well bled. How will AMD's balance sheet look once they have to spend money to convert 100% of their fabs to be SOI capable at .13u? That doesn't come for free, you know. wanna_bmw

To: Milan Shah who wrote (52074)	8/22/2001 9:35:32 PM
From: tejek	Read Replies (3) \| Respond to of 275872

If you look at this data (from marketguide.com), AMD's cash&short-term went down by about $540M last quarter, but their long-term debt went down by about $640M. AMD, as far as I am concerned, was $100M cash-flow positive last quarter. For Intel, their cash&short-term went down by about $700M, but their long-term debt went up by about $225M. In my books, Intel was a $1B cash-flow negative last quarter! If they bleed at this rate, they will not be able to meet payroll in about 2 years time. Milan Intel's Balance Sheet marketguide.com. AMD's Balance Sheet marketguide.com. Milan, I couldn't get into your links..there is a member login. However, I do have limited access to Market Guide and I have looked at Intel's balance sheet....where I may have encountered the 'funny' accounting that you guys talk about..specifically with their cash and short term investments. I am sure you guys have scrutinized these numbers more closely than I have so if I miss something, don't laugh. ;~)) Last quarter, it looks like yoy Intel's cash and st investments went down by about $3 billion, indicating a $750 million per quarter burn rate. However the balance sheet indicates the company made a profit last quarter so they shouldn't be burning cash. Where did the cash go? I don't have a lot of detail on the balance sheets I am accessing but I can't see the drain....I am sure an accountant can figure it out quickly but I can't. Having said that, Intel is sitting on a lot of cash..... on $9.4 billion...they could go for over 3 years at what appears to be their quarterly burn rate. In the meantime, AMD is sitting on $1.06 billion, virtually unchanged yoy. But it wasn't until last quarter that Intel put the pressure on AMD. It will be interesting to see what the AMD's and Intel's cash balances looks like at the end of this quarter. Then it will be clearer if AMD is up to a price war with Intel. Like I have said before, I would hate to see the $1 billion go to the price war...it would seem like a waste of cash. ted