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To: Road Walker who wrote (45627)	1/15/1998 11:32:00 AM
From: Steve Porter	Read Replies (2) \| Respond to of 186894

John, By the sound of AMD's disclaimer it looks like they may be headed under.. Cyrix would be gone by now if they still had their Jerry.. but he left(got fired.. whatever) and they sold to NSM who has the money to keep it going. No here's a good question (and an honest one). If TXN were to bid on AMD what would you call a fair price (per share)? Steve Cyrix/NSM Rule!

To: Road Walker who wrote (45627)	1/15/1998 1:20:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

John - Re: "... unless they were on the brink of going under." I think that was the gist of the disclaimer. Paul

To: Road Walker who wrote (45627)	1/15/1998 4:08:00 PM
From: Jeff Fox	Read Replies (7) \| Respond to of 186894

John, re: AMD - "the brink of going under." Just listened to the AMD conference call - not pretty. Here is a little of the information I gleened: - .35 micron process yield still too low with little hope of further improvement. Jerry seemed to imply chronic problems with wet etch steps by stating that he anticpated that ".25 process will be more robust since it is all dry processing." - K6 is only on .35 process. New K6-3D is only product designed for .25 process. - Made 1.5 million k6's in Q497 by increased wafer starts (not better yields). - For Q1, plan to "steal" wafer starts to roto-router the .25 process in Fab 25. Yield, if any, from these wafers will be K6-3D and not sold in Q1. Thus K6 output will be even or down from 1.5 million units in Q1. - Huge equipment expense, ($250M +) for Fab25/.25 process due payable in 1H98. Not enough cash to pay for it! - Out of money 1H98 and looking for loans, new equity, or whatever wherever. - "We are pregnant", meaning expenses are committed. AMD cannot throttle back .25 process equipment or Dresden expenses. - But... no significant revenue from .25 product in 1H98 - Big cash crunch looming. - K6 not generating any profits to help. If I remember right this was the planned quarter for heavy K6 profit contribution in order to finance the .25 micron investment. Well here we are and the expenses have materialize, but nothing from K6 to pay for them. - .35 process to be retired in 98. - .35 process generated zero earnings - zero return on investment. This debt is carried forward as it was suppose to be paid with earnings from K5, which didn't happen. Hey, even I can run a company like this! Jeff