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To: Time Traveler who wrote (59608)	7/9/1998 11:24:00 AM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

TT, Re: "I stand by my great respect for AMD." I like Carter Patterson's analogy better: I remember Eastern Airlines (AMD) before they folded 10 years ago. They annoyed Delta (INTC) by virtually giving away tickets. Nuff said. Tony

To: Time Traveler who wrote (59608)	7/9/1998 11:39:00 AM
From: Diamond Jim	Respond to of 186894

RE: "I stand by my great respect for AMD" ++++++++++++++++++ AMD IPO'd in 83 at $18, we are now in the 8th year of the greatest bull run this country has ever seen and AMD is <$18. EOM. jim

To: Time Traveler who wrote (59608)	7/9/1998 9:31:00 PM
From: DownSouth	Read Replies (1) \| Respond to of 186894

>Intel, then at shareholders' expense, launched a counter-offensive and capitalized very effectively on AMD's mistakes. I infer from your post that it was bad for INTC shareholders for INTC to "launch a counter offensive." Of course, you could have meant to say "at AMD shareholders' expense". I, for one, am going to profit from the offensive. It is not an expense to this shareholder. >AMD just got more cash through new stocks and loans to fuel the chip war into a higher gear, Now that IS at shareholders' expense! Here is some more info about that: Banks Loosen AMD's Loan Covenants As Chip Market Slumps By Christopher Grimes NEW YORK (Dow Jones)--Advanced Micro Devices Inc. (AMD) and its banks renegotiated its credit requirements to reflect the slumping worldwide semiconductor market. AMD, of Sunnyvale Calif., competes with Intel Corp. (INTC) in the computer chip market. AMD has suffered losses in the past four quarters, including the $65 million net loss it reported after the market closed Wednesday. Scott Allen, an AMD spokesman, said the company has been in compliance with its loan covenants during the first and second quarters. AMD sought the new terms as a precautionary move, given the global slump in the chip market, Allen said. Under the renegotiated terms, AMD can't let its ratio of cash and equivalents to liabilities to fall below .8 to 1 from the third quarter of 1998 to the third quarter of 1999. The ratio is required to be .9 to 1 at the end of 1999 and thereafter. Under terms of the amended agreement, AMD's minimum net worth can't fall below $1.9 billion beyond the end of the third quarter, and it can't suffer net losses greater than $20 million for the third quarter of 1998. Net income for the fourth quarter of 1998 is required to be at least $1. AMD's most recent loss was worse than it had to be, analysts said. The company spent $139 million on research and development; high R&D spending is viewed as a positive at technology companies. It also spent $101 million on marketing, general and administrative items. Presumably, those expenses could be cut if the company were concerned about violating the loan covenants. But some analysts are expecting a loss of about $30 million for AMD in the third quarter. Ashok Kumar, an analyst at Piper Jaffray Inc., said the company could be forced to "artificially restructure its operating expenses to meet these covenants." Earlier this year, AMD filed for a shelf registration for $1 billion in common and preferred shares, debt securities and warrants. The amendment, which was released in a filing with the Securities and Exchange Commission on Thursday, went into effect June 26. The company discussed the new credit terms during a Wednesday afternoon conference call with analysts to discuss second-quarter earnings. In trading Thursday, AMD shares were down on news of the company's loss, which was wider than expected. AMD stock recently was trading down 2 1/8, or 11.7%, to 16 on heavy volume. Earlier, the shares traded at a 52-week low of 15 5/16; the previous low of 16 3/16 was set July 2. - By Christopher Grimes; 201-938-5253 "Dow Jones News Service" "Copyright(c) 1998, Dow Jones & Company, Inc." I have lived through a big high-tech bankruptcy, and this kind of loosening by the banks is a defensive measure by them to give the company an opportunity to recover from a serious financial problem. I am not saying that this means that AMD is looking at bankruptcy, but this move is NOT a good sign by the banks. It is NOT a vote of confidence. IMHO, of course.