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

To: Paul Engel who wrote (34072)	7/8/1998 5:37:00 PM
From: gnuman	Respond to of 1571813

Paul E. re: "Wow! $105,000,000 LOSS." Yeah, I saw that too. Look's like the CC had better be damn good. ;-)

To: Paul Engel who wrote (34072)	7/9/1998 10:37:00 AM
From: Jeff Fox	Read Replies (5) \| Respond to of 1571813

Paul, re:"Wow! $105,000,000 LOSS." Oh but it is WORSE than that!!! - AMD is expanding plant proportionally to sales. Plant that will be obsolete quicker than you can say "copper". So add the incremental increase of capital expense to your operating loss. That's another $$133 million bucks! $238 Million Dollars Shipped in Q2! That amounts to $90 out the door with every K6. - Worse than that... You can bet that communications group erosion largely due to wafers stolen for K6 starts. AMD is starving their bread and butter to feed Jerry's obsession. Expect continuing decrease in communications chips next quarter. - Worse than that... With processor sales UP next quarter expect capital expense and operating loss to increase proportionally. If you believe Jerry's forecast of 3.5M units, then expect operating losses of > $130M and capital cost > $400M - Worse than that... With cash is $692M, most will be spent next quarter. If this was a car the air bag would be deploying! What an impressive crash! Jeff