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

To: Elmer who wrote (51805)	3/7/1999 8:41:00 PM
From: Mani1	Read Replies (2) \| Respond to of 1572468

Elmer Re <<It is revenue based. However in a atmosphere of declining ASPs increased volumes could still mean a BTB of less than 1.00>> Thanks for the clarification. BTB is above one, as per article. Now if the ASPs have indeed declined over the past few weeks, then the unit order is even that much higher. Unit shipment is/will be higher by the factor of {BTB*(1/1-percentage decline in the ASP)}. Now I realize that BTB can be over several quarters (probably not in PC business) and conditions and pricing can change rapidly. But the bottom line is that most likely either AMD's ASP are not really declining or they will ship a whole lot more chips than they did last quarter. Good news indeed. Mani

To: Elmer who wrote (51805)	3/7/1999 8:47:00 PM
From: RDM	Read Replies (2) \| Respond to of 1572468

Book to Bill ratio is an invention of the chip makers. They average revenue for booking and billing through the trailing three month period. Exchange rate fluctuations and unit price can have major effects in this book to bill ratio number. Frequently the shipped units are increasing but the book to bill ratio tanks due to severe pricing competition. Particularly in cases where chips are pinout compatible the pricing may fluctuate severely over just a few months. A change in component wholesale cost of ten times during a three month period has been seen many times in the semiconductor merchant chip markets. Thus the chip makers may be increasing number of parts shipped by a lot, but get less total dollar revenue for them.