Advanced Micro Devices Inc (AMD)

[KeithDust2000]

HailMary, bonuses, quick c&p from the last CC:

(thx http://epscontest.com/ )

Question – Joseph Osha: Okay, super. And then last question, back to you Bob. Just in terms of the, I see, you know, I’ve beaten up Hector about the Personal Connectivity losses, so I’ll just, you know, maybe ask ??? but then I see you’ve got another $66 million loss in sort of “other products”. Can you tell me what the story with that is?

Answer – Robert Rivet: Yeah. As I think we’ve stated before, but I’ll just restate it. The other products represent costs that we do not allocate to the product lines. In particular for AMD, that’s mostly centered on long term and short term bonuses, and profit sharing associated with how well the corporation or individual people or business units do. And so with the large improvement of profitability in some of our businesses have dictated that we actually we need to accrue quiet a bit of bonuses.

Question – Joseph Osha: Okay. Now does this refer and is it attached to the processor business or the Spansion business?

Answer – Robert Rivet: Well, the honest answer of course, most of it is coming from the processor business because of the size of the operating income.

Question – Joseph Osha: Okay.

Answer – Robert Rivet: We don’t pay many bonuses for losing money.

Question – Joseph Osha: No.

Answer – Robert Rivet: But as we continue to make the 200 to 400 to 500 to whatever the numbers are, bonuses would move proportionally to that.

Question – Joseph Osha: So I need to think of this $66 million as being attached, in part, to the processor business, and as recurring as you continue to be more successful in that business.

Answer – Robert Rivet: Correct. And, you know, of course like all bonuses, I’m sure just like yours, they get reset every year, so...

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The impression I´m getting from that is that the "other" "loss"
could actually be higher this quarter than it was last quarter. Of course that depends on how AMD does this quarter.