Advanced Micro Devices Inc (AMD)

[upc]

I've been reading the thread on silicon investor and some of you here may be interested in the evolving consensus about AMD's Q2 earnings. If I interpret things correctly, it seems that based on the two core businesses themselves, net income would have been up 10M dollars compared to Q1. That breaks down to a gain of 20M in flash, but a loss of 10M in processors. But instead of adding 0.03 to the Q1 earnings of 0.12, the earnings went down 0.03. The explanation seems to be this: A charge of 10M dollars to settle the intergraph patent suit, and 10M dollars of higher losses in the other division. But it seems that division is not just a division, but is where they put all the bonus payments and profit sharing.

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