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

To: kash johal who wrote (48265)	2/3/1999 5:13:00 PM
From: Saturn V	Read Replies (1) \| Respond to of 1571893

Ref- AMD Conference Cancellation The only reason for a conference cancellation is that something is afoot about AMD Earnings which will not be resolved by Conference Time. (a) BuyOut/Offer does not qualify. (b)K6-3 ,K-7 Schedule Slippage can be announced because they don't have an impact on short term revenue profits. (c) Palace Coup or Major personnel change [Raza resigning ?] Maybe ? (d) Problems at Vantis ? Very likely since the Vantis President departed yesterday. A product shipment issue at Vantis may have major P&L impact, and the accountants are struggling to estimate the P&L impact. (e) Further K6-2 problems ? Very likely .My best guess is that AMD got desperate to improve the yield of 400/450MHz K6-2 and tweaked the polysilicon feature too far to the short end.[ Smaller Polysilicon features dramatically improve the speed of the Processor, but a little bit too far and you will have major reliability problem or a yield crash]. Pricing pressure from the Celeron may have forced AMD to gamble and they may have a disastrous reliability/yield problem on their hands .If this is the case, it may take several days for AMD to ascertain the financial impact, and thus cancel the conference in the fashion they have. Today I dumped the few shares of AMD that I held. Hope to buy it back when the dust clears.[I like to hold some AMD as an insurance against my major holding in Intel.]