Replies to post #9434 on Advanced Micro Devices Inc (AMD)

[Dan3]

Re: I find Hectors rhetoric of how they will have 900+M of cash at the end of Q3 very striking. How will this happen?

More than half of AMD's "losses" last quarter were paper losses. AMD has always been very aggressive at depreciating both physical assets and things like "goodwill." Their actual cash outflow is a good chunk lower than what they take as costs.

Intel, OTOH, is sitting on $Billions in goodwill costs that it excludes from its quarterly P&L statements.

[sgolds]

edgarcayce, cash answer - it is simple. AMD will be assuming (if I remember the numbers correctly) $180M in cash from FASL and $190M in debt from the same. So both the cash & debt lines go up.

This buys them a whole quarter. After that, money has to start coming from the top line - sales - in Q4. AMD did a very good job keeping the ledger from sinking dispite the string of quarterly losses, but all that is to bridge the gap until new product.

They'll be at 50% processors and 50% memory, and Q4 is the quarter where both sides of the business should be hitting on all cylinders. Flash volumes are suppose to be up & Athlon64 is suppose to be shipping in volume.