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

To: Petz who wrote (201290)	6/9/2006 2:09:54 AM
From: brushwud	Read Replies (1) \| Respond to of 275872

AMD said that total decpreciation would start decreasing after mid-year. This is because depreciation for Fab 30 is dropping faster than depreciation for Fab 36 is rising. They did not. This already got discussed to death (probably because dougQC03 never says anything fewer than fifty times). ...here's the Q1 CC, with Rivet reiterating $825 million for the year in the face of just $174 million in Q1: "Depreciation and amortization will be approximately $825 million for the year, with second quarter depreciation increasing by at least 10% from the first quarter. "...Right now the current expectation is you will see increased depreciation in the second quarter and beyond as time goes on, as we continue to install more productive capacity in Fab 36." Message 22369076 Let's say Q2 depreciation grows at 15% instead of 10% as Rivet said. Then it would be $200M, still leaving roughly $225M in each of Q3 and Q4. You get what you pay for: more production capacity.