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

To: Paul Engel who wrote (36763)	9/6/1998 11:22:00 PM
From: FJB	Read Replies (3) \| Respond to of 1571043

Paul, Imagine that one company builds MPUs at a lower cost than another, but then sells them at a much lower ASP. This company could have an operating loss, while having a lower cost of production. It is very clear that the ASP is as critical to operating profits as costs are. BTW, why are you putting related thoughts in separate paragraphs? This is a bit irritating for people that are used to reading English. Surely, you don't think phrases like, You have the information. merit their own paragraph. They are almost devoid of meaning as a paragraph in themselves. Bob

To: Paul Engel who wrote (36763)	9/7/1998 12:05:00 AM
From: Ali Chen	Read Replies (2) \| Respond to of 1571043

Paul, <You have the information. You just refuse to recognize it.> You are right, you refuse to recognize the information. What you refuse to recognize is that all these "profitable" years Intel attracted key employees with an illusory stock option plan and paid them literally nothing. This highly reduced operating expenses and artificially inflated earnings. Now it is a time to materialize this part of labor compensation by exercising those options. Intel has to buy these shares at current market prices to maintain the current number of outstanding shares. This "plan" cost Intel $6B in the first half of this year, and nobody knows how much Intel owes else to his employees, how many more shares are granted and are pending for exercizing. If you add up these deferred expenses, you will find out that Intel was NOT PROFITABLE since 1996 at least. Therefore your profitability criterion about who is "low cost producer" is meaningless. As the most of your posts. Go better woodworking.