Replies to post #12639 on Advanced Micro Devices Inc (AMD)

[yourbankruptcy]

Golfbum, I think it's just because under Ruiz AMD is more and more reluctant to make any promises. He realised that 1% of PC or flash market fluctuation makes much bigger effect on AMD sales, up or down.

Of course they have to know exact savings from fasl->spancion conversion, but I suppose they just went paranoid about disclosing anything. You should agree that last year cost-cutting promises were more concervative than reality.

[sgolds]

Golfbum, it does not surprise me. Properly consolidating an enterprise as large as Spansion does not happen quickly. It usually takes a quarter to properly access overlap and identify opportunities. Then they have to shift employees around to non-competing positions and cut the excess, which takes another quarter. Thus expect to see a hit against earnings in Q4 for the Spansion reorg, with savings starting in Q1, IMHO. If sales from Spansion increase the way they expect then this may be a less painful reorg - less layoffs, less expense.

I think there will be some dissapointment with the planned slow ramp of A64. This is really a foundation year for it, and with the conversion to 90nm expect to see the real volumes turn on with that process. There should be increased 130nm A64 volumes in Q1, Q2 - but the main show is at 90.