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

To: jjayxxxx who wrote (83050)	6/20/2002 12:43:47 PM
From: Jim McMannis	Respond to of 275872

RE:"In a research note to clients on Wednesday, Rothdeutsch predicted AMD will continue losing money until the end of next year. That's a long drought for a company that's already lost money in the past three quarters." The end OF NEXT year? Like 2003? What's that? 8-9 quarters of losses? Didn't Jerry say there was to be a return to profitability in Q2 or was it Q3? Did he mention what year that was?

To: jjayxxxx who wrote (83050)	6/20/2002 12:46:32 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 275872

RE:"And it likely means more spending cuts. Already the company has cut about 1,200 jobs in Austin, reducing its payroll to about 3,000 workers. In the past year, AMD has stopped making computer processors in Austin, closing two older plants. It now only makes flash-memory chips here. The company will build its next processor plant in Singapore" Anyone know if the Austin Real Estate market has started to implode yet? Jim

To: jjayxxxx who wrote (83050)	6/20/2002 1:38:23 PM
From: wanna_bmw	Read Replies (1) \| Respond to of 275872

JJ, Re: "It's clear that AMD may have to reset the bar on costs. Under a restructuring planned last fall, AMD reduced its break-even point to slightly below $900 million in revenue. But Rothdeutsch predicts demand will stay below $800 million until the end of next year. Rothdeutsch estimates AMD will have about $1 billion in cash by the end of June after spending $250 million on debt and other capital expenditures in the second quarter." If Rothdeutsch is correct, then AMD will have zero cash before they could make a profit - at least with their current cost structure. But I guess that's his point. What would AMD have to do to lower costs by another hundred million dollars or so. They would certainly have to scale back on R&D and expansion, wouldn't you think? I doubt Intel could weather such a long drought, either. I certainly hope the market picks up sooner than this. wbmw