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

To: dougSF30 who wrote (238248)	8/7/2007 5:27:39 AM
From: graphicsguru	Read Replies (1) \| Respond to of 275872

I was figuring $1 billion in claimed asset sales + the $500M current cash surplus should last them three quarters at the current burn rate. If the asset sales net them less, they can always delay cap-ex to avoid default. Not that delaying vital cap-ex is a good idea. But when faced with a choice between doing that and landing in default, the choice is easy. And I'm confident that AMD can work out lease arrangements on new tools they want to buy that will reduce their cash outlay. They can also pay their bills late. And if they really get desperate, they can hold a fire sale on parts of ATI. So if AMD can keep their losses to $500M per Q, I'm pretty confident they can keep a cash balance above $1 billion for this Q and the next two. After that, they have to pray that Barcelona is doing enough volume that they can hit break-even. If they're still losing money like crazy and they default on the Dresden loan, then it would be pretty difficult to avoid bankruptcy.