Advanced Micro Devices Inc (AMD)

[bobs10]

Good post

AMD has a couple of graphs that are very instructive:

Ahttp://www.amd.com/us-en/Corporate/InvestorRelations/0,,51_306_651,00.html

The ones that really indicate how AMD is doing are the last 2, The Capital Expenditures as a percentage of Sales by quarter and by year, and the R&D costs as a percentage of Sales by quarter and year. These two graphs really tell the tale. In a fixed cost business getting these 2 items as low as possible is of paramount importance as it directly affects AMD’s net margins. Of course you can't get too cheap and hurt your business plan, but the graphs vividly demonstrate the progress AMD has made.