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

To: Tenchusatsu who wrote (50153)	2/19/1999 6:57:00 PM
From: Scumbria	Read Replies (1) \| Respond to of 1580037

Ten, they also have to pay for future R&D It seems likely that R&D expenses are subtracted before counting profits. Scumbria

To: Tenchusatsu who wrote (50153)	2/19/1999 7:35:00 PM
From: greg nus	Read Replies (4) \| Respond to of 1580037

Ten, break even is a simple business concept it clearly means that after paying all the bill revenue=expenses equity remains even. this is not a non profit origanizational concept. read what I said as long as AMD gained market share from Intel in the process. Intel derives much of its power from its market penitration. AMD would bemore powerful Intel would be weakened. AMd stock could trade at much higher prices without turing a profit on it's strenght alone given the high multipul assigned to Intel. Also ten it would make it easier for AMd to alter the stratdegy slightly to exchange small %'s of market share for profit at a later date. That later date woud come after they have fully geared up production to full capacity at both mega fabs, by doing so they could then focus on cost efficiencies found in mass production manufacturing operations bring in the efficiency experts and most importantly spread overhead over a bigger chip base, like intel enjoys now. With three fabs and an efficent operation AMd could be the low cost producer and have at least 50% of the market. If i were Sanders financial VP i would tell him were not going to show a penny of profit untill we hit full production and a 50% market share. Every penny above would go to lower ASP into the market or write down production cost or in some combination which achive the objectives. The only way to beat Intel at it's own game is to sacrifice profits today by reinvesting the the stratgedy. altimatly the stratgedy posistions you to pull out of the decline by steading the ship before you pull up to gain altitude. I dare any AMder to lay a copy of this on the desk of the AMd finance VP or Sanders desk. Even wall street would respect this plan.