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

To: ptanner who wrote (82656)	6/16/2002 9:23:12 PM
From: niceguy767	Read Replies (1) \| Respond to of 275872

ptqanner: "For INTC to write off the same percentage of PPE in this interval as did AMD, INTC's write off would have to have increased by over $5 billion...For whatever reason, AMD is writng off, as a percentage of PPE, about 5 times as much per annum as is INTC, since FY99 (i.e. post Athy)." This is just not right. During FY00 and FY01 Intel's depreciation was about 28% of its net PPE from the prior year end while AMD's depreciation was about 23% of the prior year net PPE. I consider these to be comparable values." FY99 PPE for INTC was $11.7 billion vs. AMD PPE of $2.5 billion. FY01 PPE for INTC was $18.1 billion vs. AMD's of $2.7 billion...The $6.6 billion increase in INTC's PPE since FY99 represents an increase of over 50%...AMD's PPE would have to have increased to $almost $4 billion to maintain the same ratio...AMD's increase to $2.7 billion represents a $1.3 billion difference on a percentage basis...That $1.3 billion if not depreciated by AMD would have resulted in profits greater by $1.3 billion or approximately $2.00 eps/annum pre-tax...For me that is a intriguing...(Conversely INTC would have to have written off $5 billion plus to maintain a similar ratio as that of AMD...