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

To: niceguy767 who wrote (212729)	10/5/2006 7:39:58 PM
From: plantlife	Read Replies (3) \| Respond to of 275872

niceguy767, Caris & Co. said today that AMD is running into a capacity issue, and it's not because of production problems. You may recall my inventory question from a few day back, when AMD said in the Q-2 conference call that they had a large inventory build, and less demand than expected, and they (Bob Rivet, CFO) "paid for an extra week" in the quarter which caused a hit on EPS. Considering the above, they went from an inventory buildup to capacity constrained, "not caused from FAB problems." Then from what???? Unless these chips are in Dell's warehouse, they're likely to be sold to somebody. Rivet also commented the extra week was "paid for" in Q-2 so expenditures would be less in Q-3. This should mean they will hit their estimates, unless the comments made are misleading or misinterpreted by me. If you can shed some light on this, I would appreciate your comments.