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

To: Elmer who wrote (73245)	3/4/2002 6:41:25 PM
From: andreas_wonisch	Read Replies (1) \| Respond to of 275872

Elmer, Re: It would seem they will lose a revenue stream and the net effect will be a minus, unless that operation was running in the red. Of course this operation was losing money, otherwise AMD wouldn't have shut it down -- this wasn't a sale. Most of revenues loss has probably already occurred last quarter (as seen by the revenue decline of the "other" section in Q4) while the cost savings won't come into full effect after the end of the 2nd quarter. More details on the expected cost savings can be found in the official PR: amd.com Andreas

To: Elmer who wrote (73245)	3/4/2002 10:15:27 PM
From: ptanner	Read Replies (1) \| Respond to of 275872

Elmer, re: Fab 14/15; "BTW, a good portion of that revenue now goes to Intel who will gladly fill those x86 embedded sockets that AMD abandoned." Why do you think these fabs were doing embedded work? These were old 6-inch 0.7 micron fabs. amd.com fabs. Wouldn't it be more likely that Fab 25 would be the source for embedded processors or is 0.18 micron overkill? The old embedded processors were EOL but has all production ceased and doesn't AMD also has a line of K6 based embedded processors so they haven't left the entire market - just the 486 class. AMD's PR on the closing said these fabs were primarily serving the foundry operations [for the spun-off divisions]. amd.com Regardless... these fabs should be a drag on earnings through 2Q02 and likely were before as AMD decided it was best to shut them down. -PT