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To: pgerassi who wrote (156949)	4/19/2005 5:22:22 PM
From: NITT	Read Replies (2) \| Respond to of 275872

Pete, I'm not sure if Intel is "making money" or if they are "profitable". Here's my stab at some definitions: Profitable- By accounting rules you would take into account all the material and people costs and R&D and Capital depreciation, you could come up with a P&L for flash. My guess is the product line is unprofitable by that set of rules. Making Money- Here’s an example: If you were going to ship 10M units at and ASP of $5, but you could ship 30M at $4. And your material cost was $3 per unit in both cased and you had a fixed set of costs for people, depreciation, R&D, etc, etc, of $50M. You could argue the additional volume made $10M in money, but the business still lost $20M versus the $30M at lower volume and higher price. I have no clue what Intel did in flash profit or loss, but you hope that the move this past quarter at least reduced the loss even if it didn't make a profit under accounting rules. Nitt

To: pgerassi who wrote (156949)	4/19/2005 6:26:28 PM
From: niceguy767	Read Replies (1) \| Respond to of 275872

"You have stated that Intel has been "making money" on flash." you might find this flash overview interesting and far more accurate in its content: "flash wasn't standalone for awhile, the intel communications group lost the $200M, flash revenue was less than half of that groups total." can't you tell the truth. the communications group had revenues of $758 million. Intel reported that flash accounted for 8% of revenues, which were $9.1 Billion. My math says that flash revenues were $728 Million that is 96% of the communications group, not less than half. What part of this group accounted for the $196 million loss: the 96% portion or the 4% portion " from here: finance.messages.yahoo.com