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

To: tcmay who wrote (74656)	3/15/2002 1:25:11 PM
From: Tony Viola	Respond to of 275872

tc, re "Why aren't they profitable?", we went around on this on the Intel thread, I think it was, a month or so ago. I think the answer is that flash has sunk, and flash is a much bigger part of AMD's business than it is for Intel. Promises are for return to profit for AMD in Q2. The "if AMD yields are so good, along with record microprocessor sales in Q4, then where are the profits?" was my particular question also back then. Again, "flash was that bad" came back as the answer. Tony

To: tcmay who wrote (74656)	3/15/2002 1:35:34 PM
From: Dave Budde	Read Replies (1) \| Respond to of 275872

"Why aren't they profitable?" This is easy. Sustained profitability is a habit. Intel formed this habit over 30 years ago. AMD has never formed this habit. I don't know how AMD could possibly form this habit given their history. You can analyze numbers all you want, but if the management doesn't have the habit they will not sustain profitability.

To: tcmay who wrote (74656)	3/15/2002 6:34:33 PM
From: Dan3	Respond to of 275872

Re: AMD should be rolling in profits... If they're not making profits NOW, then WHEN? We're in the middle of one of the worst semi contractions in history, AMD's other main source of revenue (flash) is doing much worse than CPUs, and Intel recently released the only two major new product lines it will have for 5 years (P4 and Itanium). If AMD were ever going to lose money, it would be now. Over the next few quarters AMD will be introducing two new processes (.13 and SOI) - with .13 coming around the end of this month. Following that will come Hammer - a product that has Intel pulling in the release of P4 3GHZ and frantically trying to develop Yamhill - despite the existence of Yamhill dooming the whole 7 year Itanium program. AMD starts making money in Q3 as .13 ramps, hopefully aided by some recovery in the flash market. Intel starts losing money in Q4 as Hammer forces Intel to cut prices on a number of its high end lines.