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

To: Sarmad Y. Hermiz who wrote (237492)	7/28/2007 2:55:37 AM
From: NicoV	Read Replies (3) \| Respond to of 275872

>>Any idiot can sell lots of CPU's at a loss. Q3 will burn another $400m at least in cash. Q4 around $300m or more. Then comes the usually lower first half. That will burn another $1B. It's not because you absolutely don't believe that AMD will be profitable in Q4 that you should assume that AMD will not make any progress to being profitable. You conveniently forget that - AMD will get cash from selling Fab30 equipment - AMD will get cash from selling Spansion shares - ASP/GM rise because of Barcelona introduction - Q3 and Q4 typically show very healthy growth numbers for AMD: Q3 06 18% units Q4 06 19% units Q3 05 26% units Q4 04 double digits unit growth Q3 04 21% revenue growth Q4 03 15% revenue growth Q3 03 24% revenue growth Q4 02 60% revenue growth Q3 02 -31% revenue Q4 01 >50% revenue growth Q3 01 -20% revenue, units equal Q3 00 >10% unit growth So 30-40% growth (units or dollars) from Q2 to Q4 looks normal for AMD. Taking this into consideration, being profitable in Q4 doesn' t look unbelievable to me.