Intel Corp (INTC)

[alan81]

Gee thanks...
I think this is the statement that got me in trouble:
AMD has been ramping fab 36, and that costs money
You interpreted this as non-recurring costs, while I was referring to recurring costs. Personally, I thought that obvious since the non-recurring costs started well over a year ago, while Q3 is the first time they will have any recurring (shipment related) costs.

I'll take another stab at WHY I think this is important. Q3 is forecast to be about $1.3B, which is the same revenue AMD had in Q1 2006. They achieved that revenue with ONLY the expenses of fab 30, and no fab 36 output. In Q3, they will have some fab 36 output supporting that revenue level. That means the $553M COGs (cost of goods sold) that we saw in Q1 is a very low estimate and we should expect something a bit higher. That's all.
--Alan