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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Petz who wrote (27034)	12/21/1997 10:55:00 AM
From: Time Traveler	Read Replies (1) \| Respond to of 1573236

Petz, Depreciation, R&D, and G&A before gross margin: That is a very good point you have brought up. Your estimation of $1,500 to $2,000 is quite low (at least for AMD) however. From Lehman Brother's quarterly report for AMD (courtesy of Albert Kovalyov, our good friend), it shows for K6: - Revenue of $150M with net lossgain of $30.7M - Cost including R&D and G&A of $150M + $30.7M = $180.70 - Cost of goods = $106.3M, a percentage of total COG / total cost Let's say: - average wafers per week = 2,500 Then the cost per wafer is: $106.3M / 2,500 / 13 = $3,300 You may argue that the capacity is running higher than 2,500 wafers per week, then the yield to satisfy the boundary condition of 1M pieces is even embarrassingly lower. Now please continue. John..

To: Petz who wrote (27034)	12/22/1997 1:00:00 AM
From: Paul Engel	Respond to of 1573236

Petz - Re: " If AMD had had 10% R&D, they would have had a profit every quarter of '97. If AMD had not 10% R&D, they would not have any product to sell - how much of the 0.35/0.25 micron process development is covered in this R & D. Paul