Advanced Micro Devices Inc (AMD)

[kpf]

buggi

I think its the first time, that we could see, the inventory split between Flash and CPG at AMD.

Spansions inventories were in S-1 in January already.

Looking at CPG inventories, next step is assessments on the structure in terms of raw materials/WIP/finished goods. WIP consists of wafers in Fab30 and test- and packaging facilities plus die inventories.

For the valuation side, there is probably not much finished goods at all in AMDs inventory, these are rather in the deferred income on shipments to distributors position, where the valuation is obviously sales price. In the WIP valuation is manufacturing cost or market value, whichever is lower.

K.