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

To: Yougang Xiao who wrote (55881)	4/19/1999 8:06:00 PM
From: kash johal	Read Replies (1) \| Respond to of 1577067

Yougang, Re: Q2 I suspect that Q2 will lose money as well. I don't see anyway they can have a profit. If they breakeven it will be the best they can do. Don't worry about the tax rate- it's irrelevant. The key is KIII ramp - it's obviously going very slowly and the kVII launch coupled with the 0.18 and copper status. The other worry is that Cyrix may pull something out of the hat like a socket 370 chip running at 400-450Mhz-in volumes in a few weeks. Worst case that could kill margins for the k6-2 completely as ASPs could drop from $78 down to $65-$70 range. I suspect the number of units could exceed 5M however. Regards, Kash Johal.

To: Yougang Xiao who wrote (55881)	4/19/1999 8:12:00 PM
From: Mani1	Respond to of 1577067

Yougang, Re << Does the tax credit in dollar term 1 dollar tax credit=1 dollar loss?>> Yes Re <<If we know the amount of tax credit carry forward and the zero tax rate assumed for 99, can we imply that range of profit that AMD is expecting for 99?>> You are reading too much into it IMO. I would be fine with a break-even 1999. Remember break-even 1999 would mean a $0.80 earning during the next 3 quarters. Extend that over a year and that would be more than a $1.00. If that happens I would think that AMD would be in the 30's at worst. Going forward the street wants to see prdictable earnings and increasing revenues and market share. K6 III and K7 can make that happen. But on the other hand .... Mani