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

To: TechieGuy-alt who wrote (148199)	1/18/2005 10:32:30 PM
From: j3pflynn	Read Replies (2) \| Respond to of 275872

It seems to me that reality lies somewhere in between niceguy's gushing and the Scrooge "humbug" attitudes some are displaying today. I think Hector saw a bad Q shaping up and decided to take care of all the dirty laundry now. I haven't changed my outlook much unless they decide to do something really stupid re: flash like throwing good money after bad, but it doesn't sound like that's likely to happen. I suspect someone's fat's in the fire and it's deliver or die time in the flash dept. Paul

To: TechieGuy-alt who wrote (148199)	1/18/2005 10:36:35 PM
From: dougSF30	Read Replies (1) \| Respond to of 275872

Flash is not ~50%, though I agree it is the most pressing problem, and must be dealt with swiftly. In terms of earnings contributions, Flash represents ~300M out of 1.064B total earnings-contributing revenues. (This is due to the 60-40 allocation.) That's about 28%.

To: TechieGuy-alt who wrote (148199)	1/18/2005 11:46:26 PM
From: Petz	Read Replies (2) \| Respond to of 275872

I think one thing AMD can do IMMEDIATELY is to stop consolidating ALL of Spansion in its Revenue and Operating Income lines. True, it doesn't change the bottom line profit and loss, but it would at least make flash less visible. Flash was, in reality, 28.5% of revenues. It had a -8% net operating margin. That compares with -14% at Intel's ICG. Even the combined net operating margin at PCP+Mem Products was -13%. (-11% if you include all of Spansion) BTW, did Bertrand Cambou participate in the CC? I was busy this evening and didn't listen yet. Petz