Intel Corp (INTC)

[fowler]

Elmer,

re: Sounds to me like AMD is expecting a ~$400M cash burn in Q4.

I sense a little bit of panic in the AMD boardroom. You don't undertake a complete bottoms up business model restructuring unless there are serious problems; bond holders knocking at the door. You don't mortgage your facilities for operating funds unless you are really going to need the cash.

Maybe the 4th and 1st quarter work out as they are anticipating. Maybe the revenue and GM is there that they expect. They've missed the last two quarters, that doesn't mean that they will miss the next two quarters. But if they are wrong, then the consequences are getting really serious.

John