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

To: j3pflynn who wrote (148200)	1/18/2005 10:59:54 PM
From: pgerassi	Read Replies (1) \| Respond to of 275872

Dear Thread: There are a few points as to why the decrease in flash revs was smaller than the delta of the flash earnings. Currency changes. Most of the fabs making flash are in Japan where the yen appreciated vs the dollar. Most of the customers in China and the US (automotive, cell) have prices set in dollars thus as flash costs rose as the yen appreciated, the costs surged to the selling prices. Similar effect on CPG as fab in Europe where euro appreciated but, most selling of this were to non dollar denominated international markets where the effects were reduced. This is also why the Shareholder's equity rose as these non dollar denominated fabs rose vs the dollar (especially the equipment into Fab 36 and Fab 3 SV? (300mm fabs)). With the reduction of diluted shares to 375 million from 461 million, the book value rose from $5.85 to $8.00 per share. As the dollar begins to slide, this effect may reduce eps, but increase book values tremendously. Any thoughts on this possibility? Pete

To: j3pflynn who wrote (148200)	1/19/2005 12:29:30 AM
From: TechieGuy-alt	Read Replies (3) \| Respond to of 275872

The problem is that Intel has taken flash out of AMD's hands. There's not much that AMD can do re. flash. The words about "cut some cost some more" and "drive harder" etc. etc. are BS. Why had they not cut prices already? Why were they not driving harder already? We have been hearing about the advantages of Mirrorbit for more than 3 years now w/o any effect apparent to the cost structure or competitive position. The fact that ASP's were down so much in one Q (and for a few Q's now) should tell anyone how commoditized the flash market is. (not quite but close) almost as bad as the DRAM market where you can pop in any one of prequalified DIMM's. If it was not, it would take folks months to design out the AMD flash and design in the Intel flash, qualify, test, ship and then the effect show up in the Q reports. TG