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

To: Haim Barad who wrote (59906)	5/28/1999 1:26:00 PM
From: Mani1	Read Replies (1) \| Respond to of 1572803

Haim, Even at the ASP of %78 AMD has a positive gross margin of about 25%. So they will not lose more money if they ship more chips. Another way of saying it is that 5 million chips sold at $78 is not enough to pay for what it costs to make those chips plus the over heard, R&D, G&A etc. For every more chip that AMD makes they will lose less money, even if they can only get $78 for it. AMD's would break even if at the current volume they could get ASP's of $83, since they can't they will lose money. All the talk about AMD losing more money for every chip they ship, and another $100+ million lose quarter is from the uninformed. I look for AMD to post a loss of $35 million this quarter with the ASP of $76 on the volume of 5.2 million CPU's. Comments? Mani