Advanced Micro Devices Inc (AMD)

[HailMary]

If the bonus and the losses from Spansion weren't subtracted from Q3, They would have made more than $0.40 a share last quarter.

I agree if the bonus was removed that would be a big change, but they explicitly said in the conference call that these expenses will continue every quarter, so we cannot ignore them.

As for Spansion loss, after you adjust for the minority interest, the difference would have been only $30M to net income. That is only another 7 cents. So without Spansion loss, Q3 earnings would have been $.25/share. And remember after IPO, AMD will still have to take an adjustment for 40% of Spansion's losses as they will still be a large owner. I expect Spansion to be close to break even this quarter though.

So I expect Q4 to be in the $.35/share range. Expenses are going up (R&D and MG&A), which is going to keep earnings in check.