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

To: JBoyd who wrote (34840)	7/19/1998 4:24:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 1573062

JBoyd - Re: "The only point I would question is Dresden dragging down P/L in the fourth quarter; I'm pretty sure it won't be a concern until 1999." Dresden has to be equipped with Fab Equipment. So, purchases have to be made and AMD has had to "borrow" money for these purchases - and may have to borrow more. The interest expenses on these borrowings directly impact the P & L sheet - they are a specific line item as you will see if you carefully peruse the AMD quarterly report. From the negative impact of these interest payments, Dresden will drag down AMD's profits. But you are certainly right - once Dresden comes "on line" - which may not be until Q199 or Q299, then the real expenses will begin - salaries, BENEFITS, chemicals, wafers, water, electricity, DEPRECIATION, etc. Paul