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

To: TechieGuy-alt who wrote (83270)	6/22/2002 4:41:06 PM
From: ptanner	Respond to of 275872

TG, re: "Operating loss != cash loss." In the first quarter AMD's cash loss was actually greater than its operating loss... aside from the $500M convertible bond. Net income: ($9M) Net cash&ST investments: +$407M (I am skipping the other changes in the balance sheet - just wanted to note that cash loss can be > operating loss.) re: "Their depreciation from building FAB30 is probably much more than what they are spending outfitting FAB30 for 0.13 (anyone know?)." WRT net of capital investment and depreciation: Q1 these values were $200M and $174M Y02 estimated 1Q CC at $850M and $700M So remainder would be about $650M and 526M. jc-news.com AMD will also be making some payments on debt this year. And finally, won't the operating losses be reduced by "tax benefits" which are a non-cash asset? -PT

To: TechieGuy-alt who wrote (83270)	6/22/2002 4:41:21 PM
From: Elmer	Read Replies (2) \| Respond to of 275872

Operating loss != cash loss. Their depreciation from building FAB30 is probably much more than what they are spending outfitting FAB30 for 0.13 (anyone know?). Plus, when in the past a much weaker AMD (with a weaker product line) has not had much problems issuing bonds. Why do you think they will have a problem this time (assuming they have to issue some bonds if things don't turn around in time?). In the past AMD was able to sell off division after division to raise cash for their Jehad against Intel. They've sold off virtually everything they have including their headquarters building. The only thing left is the only thing that makes money, Flash. Expect a sale because Jerry will continue the war to the end. While I agree with you that depreciation is part of that loss, cash is also needed for R&D and Capex. This is not a pinprick AMD is suffering. This is a full blown hemorrhage and there is nothing to stop it for at least 3 quarters. If as I suspect Jerry has been overhyping Hammer, the end of AMD is not far beyond that. I hope I'm wrong but I don't think so. EP