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

To: andreas_wonisch who wrote (65775)	12/16/2001 10:22:58 AM
From: heatsinker2	Read Replies (1) \| Respond to of 275872

Andreas- OK let's do some math, assuming (conservatively) that 8 million processors were sold in both Q3 and Q4. With an ASP increase of $12, that represents an additional $96 million. Here's what AMD lost last quarter (from the earnings release): "The pro forma net loss for the quarter, which excludes one-time charges, amounted to $97,424,000, which was equivalent to $0.28 per share. The pro forma net loss excludes the effects of restructuring and other special charges amounting to $89.3 million and additional inventory provisions amounting to $6.9 million." So, at least before special charges, we may be very close to breakeven. Cool. Oh yeah, TCMay should definitely get the boot.

To: andreas_wonisch who wrote (65775)	12/16/2001 10:32:49 AM
From: heatsinker2	Respond to of 275872

15% sales gain in 4th quarter From the same article: "If Sanders' estimates are correct, the chipmaker will be increasing its fourth-quarter revenue by about 15 percent from the previous three months, Lee said. Last week, AMD said it expects sales to grow by at least 10 percent from third quarter's $766 million.". sfgate.com.

To: andreas_wonisch who wrote (65775)	12/16/2001 1:07:01 PM
From: Dan3	Respond to of 275872

Re: AMD's ASPs rose more than 20% Well, that goes a long way towards explaining the fury and vituperation we've seen from Intel recently. AMD appears to have outfoxed Intel with a little marketing Judo. Intel made a head on charge against AMD in the USA retail desktop market, which AMD probably encouraged by at first matching or beating the cost cuts and incentives Intel was putting up. But then AMD must have pretty much walked away from that segment leaving Intel committed to supplying 80% of that market at very low pricing instead of the hard fought 60% they were expecting. Kind of like stepping aside when the other guy charges at you screaming, just putting out a foot to trip him as he runs by. Meanwhile, AMD focused on the retail mobile segment in the US, and the desktop market in Europe, and Asia, where Intel wasn't offering the same incentives and AMD could command higher ASPs while still growing market share. So Intel is losing a little market share, world wide, on falling ASPs, while AMD is gaining market share, on rising ASPs. And Intel is forced to accept lower ASPs in the key corporate US market, since you can't sell chips to Dell, Compaq, and HP at one price for consumer boxes and another for corporate boxes - a chip is a chip. Not as effective a stunt as the threats/bribes Intel used to jerk away, at the last minute, the corporate desktop wins Jerry thought he had lined up last year, but a nice piece of payback, nonetheless. Intel must be furious.