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

To: Paul Engel who wrote (60874)	10/29/2001 3:50:07 PM
From: Petz	Read Replies (4) \| Respond to of 275872

By a narrow definition of goodwill, 100% of ZERO is ZERO. All costs of the Nexgen acquisition were 100% written off in the quarter in which it occured. This included not only the legal and accounting costs but also "Writedown of property plant and equipment" totalling 84 million. May I remind you of your original post? Elmer - Re: "Thanks Eric - As best as I can figure AMD is still in the red from it's purchase of NexGen. Earnings from '96 - 2000 totaled 723 million. The purchase cost $810 million. That's a loss of $87 million. The purchase of Nexgen did NOT cost $810 million, it was purchased with stock, and AMD placed no value on the acquired property, physical or IP. And all of the acquisition costs, such as legal fees and writedowns occured in the period '96-'2000, so my point that they have already been subtracted from earningsj is 100% accurate. IMO, AMD could not have survived in this business without the Nexgen acquisition. To claim that Nexgen's purchase was an abuse of fiduciary responsibility is patently absurd. Without it, there would not have been ANY future profits, let alone $723 million. Petz