Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Elmer who wrote (51810)	3/7/1999 9:10:00 PM
From: RDM	Read Replies (1) \| Respond to of 1572373

I think that no single measure tells everything. This ratio has quite are few fans due to including knowledge about booking back log. Frequently chip companies sell an order with a three month or longer delivery schedule. Since the booking is forward looking and the billing is rearward it provides useful incite. In some companies will relatively uniform looking quarterly results, the monthly data can look quite different. A common phenomenon is that 80% or more of the monthly is shipped in the last few days of the month and the last month of the quarter is frequently the largest month by a lot. This makes forecasting extremely difficult even within the company. For public companies there is a quite time restriction for the third month of the quarter when much of the product is actually shipped. Part of the reason that this end of the quarter phenomena exists is that companies buying parts do not want any excess inventory to appear in the quarterly results. Similarly companies selling the parts don't want them to appear in inventory either. Lots of components are shipped but in transit and not yet received during this critical end of quarter date. I believe that they may actually not show up in either the chip buying or chip selling company's inventory.