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Technology Stocks : AMD:News, Press Releases and Information Only! -- Ignore unavailable to you. Want to Upgrade?

To: Brian Hutcheson who wrote (3015)	12/20/1997 2:14:00 AM
From: greg nus	Read Replies (2) \| Respond to of 6843

Brian-Petz, Lets talk about the Psycology of posting earnings. AMD has already stated it will loose money for the fourth Qtr. I have had a lot of experience with corporate thinking on what to report. There is a certain amount of latitude that even the Indpendent auditors will allow. Particualry if the earnings are geared downward rather then upward. The fourth QRT represents an opertunity for AMD to underepport earnings by way of overstating expenses... particulary equipment purchases, installation expenses, bad wafers, inventory adjustments for obsolesence, shipping adjustments ect. Since 97 is essentially a write off year for AMD if I were the CEO OR CFO I would take the biggest hit I could get away with for the qtr. Particulary if I knew that during the first Qtr I was staring at more Fab conversion expenses. Also I would want to position my company to post a recovery to profitability as early as possible. Provided I knew normal production ramping was close at hand (yields improving). this is essentialy what AMD did last forth Qtr to position AMD for 97. Sanders refered Qrt 4/96 as a staging year for the next generation of chips and AMD took a hit on earnings. I expect AMD will do so again this year that is why the $0.09 loss per share will not hold up. It will be more like $0.25. AMD may have already signaled this to the street with a more rosy picture of the 1qrt 98 showing how they'll recoup' so they can jump start the stock again. You can sort of see it. All the recent new latly has been absent any comment from Jerry. Go back and look...look at all the recent corperate news releases..to a tee given by the underlings...he is silent because now because he is usually positive to the ponit of being dangerously liable. He is conspiculsy absent of comentary so he does'nt say anything at all so he can't misslead. Otherwise he would be personaly liable and at risk for suit. We've seen that in the past also. Last comment I can find he made was "wider losses", at or shortly after Comdex.