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 : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Elmer who wrote (156794)	1/24/2002 10:31:04 PM
From: Joe NYC	Read Replies (2) \| Respond to of 186894

Elmer, I say AMD has terrible yields and they lose money on each low yielding wafer they start. Start fewer wafers, lose less money. I guess you never took Economics 101. They cover concepts of fixed and variable costs. If you did, I would suggest this exercise. Look at the financial statements just released. Try to estimate what the fixed costs are. Compared this number with $15 million loss. If the fixed costs are higher than $15 million loss, it means that variable costs are lower than revenues, meaning producing more increases the variable income from which the fixed expenses need to be subtracted to reach final income/loss figure. This exercise is a complete non-brainer, since just the executive salaries alone (more or less a definition of one of the fixed costs) surpasses the loss. This is just to start. Add 161 million R&D to fixed costs etc. You get the point. Joe