Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Zeev, you are correct that next year's capex was not specified in the article. I posted the article more to show the size of their current capex, and even assuming a large percentage increase, the actual $$ would not be significant, as you have noted by comparing their capex to that of INTC.
AK
p.s. I could not find anything showing IFX projected capex for this coming year.
AMD Capex cut:
AMD faces job cuts, lower CapEx, and massive charge
Semiconductor Business News
(11/07/02 02:27 p.m. EST)
SUNNYVALE, Calif.--In response to mounting losses and competitive pressures from Intel Corp., troubled Advanced Micro Devices Inc. here plans to reduce its workforce, cut capital spending, and take a charge of “several hundred million dollars” in the fourth quarter, according to a report from Reuters.
Reports have also surfaced that AMD must cut 10%-20% of its 13,187-person work force in order to break even.
No other details were given about the job cuts, but AMD CFO Robert Rivet during a conference today said the company's capital spending budget is expected to be about $650 million in 2003, down from $750-to-$800 million in 2002, according to Reuters.
Rivet said he expects the company to reduce its expenses by more than $350 million in 2003, according to the report.
"We are accelerating our strategy to reset our business model and lower our corporate breakeven point,” added Hector Ruiz, president and CEO, in a statement issued by AMD today. “We have already begun implementing aggressive actions in the fourth quarter that are expected to significantly reduce our quarterly breakeven point in 2003. An associated pre-tax charge of several hundred million dollars will be taken in the fourth quarter," he said.
On a positive note, Ruiz confirmed the company's sales are expected to increase by 20% or more in the fourth quarter of 2002, compared to the third quarter ended Sept. 29.
"Based on anticipated seasonal patterns, the benefits of a better balanced inventory in the supply chain, and expected significant flash memory sales improvement, we currently anticipate a sales increase of approximately 20% or more in the fourth quarter compared to the third quarter," he said in a statement.
Hit hard by a slowdown in its core processor business, AMD reported sales of $508.2 million for the third quarter of 2002, down 34% from $765.9 million in the third quarter of 2001 and by 15% from $600.3 million in the previous period.
The Sunnyvale-based company also reported a net loss of $254.2 million, or minus $0.74 a share, compared to a loss of $97.4 million, or minus $0.28, a year ago. In the previous quarter, it reported a loss of $184.9 million, or minus $0.54 a share (see Oct. 16 story ).
Infineon capex info:
Infineon's loss widens as Q4, outlook fails to excite
By Peter Clarke
Semiconductor Business News
(11/08/02 07:22 a.m. EST)
MUNICH, Germany -- Just days before the opening of the Electronica exhibition here -- the biennial opportunity for local chip giant Infineon Technologies AG to take center stage and shine -- the company has announced its fiscal year results. Larger than expected losses and gloomy 2003 forecasts for a number of industry sectors from normally upbeat Ulrich Schumacher, Infineon's president and chief executive officer, are likely to cast a shadow over next week's show.
In its fourth quarter, which ended September 30, Infineon had sales of about $1.40 billion down about 1% sequentially but up 28% compared to the fourth quarter of 2001. The fourth quarter net loss, which includes the impact of a deferred tax valuation allowance of about $277 million, amounted to about $511 million compared to a net loss of about $77 million in the previous quarter and a loss of about $528 million year-on-year.
The size of that fourth quarter loss surprised analysts according to reports. The larger-than-expected loss was accompanied by downbeat comments on the semiconductor outlook for at least the first part of 2003.
"The market outlook for the coming months shows no clear signs of a sustained improvement in demand yet. We have improved our sequential revenue growth in all logic segments by 25% over the last four quarters in a challenging market environment. Currently, we see a stabilization of demand in mobile communications and a moderate development of demand in automotive semiconductors. However, development of demand in our wireline communications and chipcard segments remains uncertain until the end of the second quarter of fiscal year 2003. And we expect continued pricing pressure in all business groups in the months ahead," said Schumacher, in a statement.
For the whole year the company announced revenues of about $5.26 billion, a decrease of 8% from the previous fiscal year and a loss that widened to about $1.03 billion.
The revenue decrease resulted from the overall sluggish semiconductor market with substantial pricing pressure in all business groups, especially Memory Products, the company said. However, Infineon's Automotive & Industrial segment had its best quarterly and annual revenue performance ever. The communications and chipcard segments were hit by reduced capital spending of global telecommunication carriers, weak demand and strong overall pricing pressure.
Infineon improved its cash position a great deal during the year mainly by a major reduction of capital expenditure to about $650 million from $2.3 billion spent in fiscal 2001.
"The successful implementation of our cost cutting program 'Impact' resulted in more than Euro 2 billion cash savings since June 2001. Consequently we improved our free cash flow and gross cash position. This provides us with a solid financial foundation as well as sufficient flexibility to maintain our competitive market position," commented Schumacher.
Despite the current increase in demand and prices for memory products, Infineon said it is too early to assume a sustained market improvement. Infineon will continue to concentrate on reducing its DRAM manufacturing costs, extending the range of its DRAM product offerings and improving its memory product mix.
"Our ambitious strategic goal is to become one of the top four semiconductor companies and double our worldwide market share to 6% in the next five years. We expect our growth to come primarily from organic growth, supported by partnerships and strategic acquisitions. We will utilize our strong product and technology portfolios, system know-how and strategic partnerships in order to return to profitability," commented Schumacher.
Oh Fred, I hope you are not a Churak.
See #msg-571675
AK
?cixelsyd
KA
Fred, nice of you to stop by. I sure don't know what's happened to the Jailhouse since you resigned. Sheriff Matt doesn't seem to be getting any new inmates, and I'm not sure whether that's good news or not. I know he's referred one or two over here, but apparently the gadflies are too intimidating. We are getting desperate, Fred. We are reduced to posting cartoons and dirty pics. Things have changed so much even Matt has disappeared. What do you make of all this?
AK
Fred, that is the problem with you limrick types, you write inverse.
AK
Who needs a Vette when you have this?
Speaking of cooking, how would you like your teletubbie?
You think that is overkill?
Phil, you'd have something like this in mind too?
But Churak, you can beat 'em...
Hard to miss, isn't it?
AK
We are defeating the assholes ... Yup, and we're going to do it the capitalist way too!
Matt, I see that Florida is getting new voting machines...
Husker, if you like the gifs, go to the Jailhouse thread and look at the posts starting yesterday. The smilies started there, then today we were all hurling them at each other.
Another thread where we posts lots of gifs and pics is the Corner Bar.
If your humor is slightly warped please feel free to join us. The Corner Bar is themed as, well, a local bar, and the Jailhouse, at the moment, has no inmates, just the jailhouse peanut gallery, so we play with the prison them there, including Churak's famous "bar of soap".
Drop by and get acquainted.
AK
Churak, here's something productive for you to do...
Uhh,
Ah, shucks, Fred...
Sara, why don't you change your signature block to this...
Why?
AK
Muell, just relax and enjoy your visit here in Jail...
Churak...
The motion having been made and seconded, all voting for approval say Aye; all opposed say Nay.
Hey Colt, Carolyn's bouncer know what's on your computer?
Colt, as you can see here, Churak's been putting the beer away, but I'd be more concerned about his other proclivities...
O.K. Colt, remember, you asked for this...
Yeah, I know what you mean about Churak...
Your welcome...
Colt, maybe you can trade him one for his Corvette?
AK
Colt, speaking of pukin', what'd you pay for your pumpkin?
AK...ROFLMAO!
Speaking of pop-out ads...
Mastercard?
Carolyn, how about new bar stools?
Carolyn, when you going to have the new hot tubs installed?
=============
Police look for missing Anchorage hot tubs
The Associated Press
ANCHORAGE(November 3, 3:40 p.m. AST) - Anchorage police are looking for thieves who stole several hot tubs in October.
Someone used bolt cutters to cut the lock to the storage yard of Sundance Spas in South Anchorage, police said.
The thieves hot-wired a forklift, stole four hot tubs and damaged a company vehicle.
The hot tubs are worth a total of more than $20,000.
Copyright © 2002 The Anchorage Daily News
I would have probably had a talk with him.
I doubt you've met many like me
Too much screen time can make computer users sick
And the solution is....
Sleep?