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

To: StockMan who wrote (34498)	7/14/1998 7:18:00 PM
From: Xpiderman	Read Replies (2) \| Respond to of 1576842

Advanced Micro Devices (AMD): Morgan Stanley Dean Witter lowers estimates for chip maker after the company posted a wider than expected Q2 loss, cuts FY98 EPS from loss of $0.05 to loss of $0.65 a share and FY99 from net of $0.80 to profit of $0.50 a share; continues to rate issue at "neutral". The following is AMD 's historical numbers and my estimates. AMM 93 94 95 96 97 98 99 Mar $0.60 $0.81 $0.91 $0.07 $0.09 -$0.39 $0.00e Jun $0.63 $0.89 $0.86 -$0.33 $0.07 -$0.45 $0.15e Sep $0.60 $0.83 $0.52 -$0.25 -$0.22 -$0.12e $0.17e Dec $0.41 $0.73 $0.52 -$0.15 -$0.09 -$0.06e $0.13e Year $2.24 $3.26 $2.81 -$0.66 -$0.15 -$1.02e $0.45e Yr./Yr. n/a 45.5% -13.8% -123.5% -77.3% -146.6% n/a Historical P/E Range: High 89 41 25 13 n/a n/a Low 27 18 11 5 n/a n/a

To: StockMan who wrote (34498)	7/14/1998 7:51:00 PM
From: Petz	Read Replies (1) \| Respond to of 1576842

S, AMD is throwing away LESS wafers these days, not more. The point is how many wafers are they throwing away. They probably are throwing away more on the .25u because their losses were more. The truth is, the CPG products group had lower losses in the 2nd quarter than they did in the 1st. The other businesses had their profits practically disappear. This resulted in a slightly larger loss. Take a look at the income statement on the company web site amd.com Scroll down past the balance sheet. You will see that "Cost of Sales," of which wafer costs are a part, FELL from 423,591,000 to 390,140,000. You also know that wafers cannot be charged to R&D as some dumb-loper on this thread has intimated. Another place on the statement it says that HEADCOUNT went up by 3%. Salaries is probably the biggest part of "Cost of Sales" in any corporation. Therefore it is extremely unlikely that AMD threw away -- or more correctly had bad yields on -- more wafers. Petz