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To: Tushar Patel who wrote (155941)	1/17/2002 11:34:52 AM
From: Tony Viola	Respond to of 186894

Tushar, >AMD's ASPs went to $90?! AMD's yields are 90%?! And AMD is still losing money? What do the yield, ASP and volumes have to be before AMD can make a healthy profit? Jerry put it in terms of revenues, that is, what it will take to turn a profit in Q2 (right now AMD is indicating another loss in Q1). He said that if they can repeat the revenues of Q4, in Q2 (he said $950 million), they can be profitable in Q2. That is a good question though, the way you put it. Either Flash is dragging down the microprocessor biz, or AMD can't get back to anything but marginal profitability this year. Oh, or they're fabricating one of those "90" numbers. Tony

To: Tushar Patel who wrote (155941)	1/17/2002 12:15:05 PM
From: wanna_bmw	Respond to of 186894

Tushar, Re: "And AMD is still losing money? What do the yield, ASP and volumes have to be before AMD can make a healthy profit?" You have a nice way with words, and bring up a good point. I believe that AMD is hoping for a recovery in their flash business and continued volumes from their CPU business before they can claim a profit. Since Q1 falls seasonally from Q4, they already know that they will post a loss. Their business model is working against them. If they don't gain in volumes and steal market share from Intel, the company will post more losses. That's a tough act to be required to follow. Intel simply needs to maintain market share, and the company will actually grow because of reduced costs, and a marginally growing market. wbmw