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To: Robohogs who wrote (162547)	6/27/2005 9:53:48 PM
From: niceguy767	Respond to of 275872

"Do not forget the addback for F's share of Spansion losses will be much smaller if loss is halved." Seems to me the addback in the past 2 quarters has been 40%, So take lat quarter's operating loss of $110M and addback $47M and you arrive at a net draw against earnings of $63M in Q1. 50% of 110M is $55M, net of 40% = $33M. The way I see it, if flash losses are halved in Q2, then earnings are impacted positively by $30M. Add in $35M in incremental CPG earnings and that's a positive swing of $65M in what is considered a weak quarter. (Let me stress that, imo, CPG will surprise much more positively than flash, so if flash losses are cut in half in Q2, my outlook is that gruzbeck, at $0.15, is at least $0.07 too low.)