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

To: qgambit who wrote (92436)	1/17/2003 3:30:56 AM
From: TGPTNDR	Respond to of 275872

qgambit, Re: <Because its more likely than not that such a tax credit would not be used (ie no profits to use it against) in the near future. > In their next year guidance they told the analysts to plan on a 10% tax rate for next year -- IIRC, -tgp

To: qgambit who wrote (92436)	1/17/2003 9:04:19 AM
From: herb will	Read Replies (1) \| Respond to of 275872

ggambit “Because its more likely than not that such a tax credit would not be used (ie no profits to use it against) in the near future. The NOL rule allows the credit to be claimed if the firm feels that it will use it over the 20 year carryforward however most firms arent so agressivley optimistic.” I think that this needs a little more explanation. AMD has recorded Tax Benefits of $198884M over Quarters 1, 2 and 3 which apparently was based on the promise of a return to profitability by the 2nd quarter of 2003.The asset account, Deferred Income Taxes, reflected a balance of $177321M at the end of Q3. I am sure that AMD would have loved to have added to the Deferred IncomeTax Account in the current quarter but seeing this is a WorldCom audit year and the time of year when the auditors are snooping around the premises I am sure that discussions were had relative to the viability of the Deferred Income Taxes account. It appears that the auditors Ernst and Young told AMD they would not be Burned and Stung if and when AMD went belly up and therefore did not accept AMD assessment when AMD would return to profitability and required AMD to write the account down to zippo and reverse all off the tax credits previously taken. The above turn of events should be rather ominous to this thread of AMD investors if there are any left. However I am quite sure there is a few that are still holding some wallpaper. Herb