Replies to post #23290 on Advanced Micro Devices Inc (AMD)

[wbmw]

Keith, I did not listen to the CC, but I will answer your previous question:

Questions: What other product lines are part of INTEL´s WCCG (I know what´s listed on the earnings report, but what are those "application processors" etc.)?
How much revenue would come from those? Again, I´m not impressed at all by INTEL´s numbers in this space, and definitely expected more, judging by all the articles we´ve seen about lead times etc. wrt. flash. While that´s just noise for INTEL, it´s close 50% of AMD´s revenue.

For one thing, X-Scale based products also fall under WCCG revenue. In fact, everything on this page is also in that category:

http://www.intel.com/products/wireless/index.htm?iid=HPAGE+header_products_handheld&

The revenue on these items is limited right now, mostly due to the way the market ramps these items. Also keep in mind that this market is filled with paper launches. Intel and other companies announce flash and embedded products when they sample, not when they are available for sale. So there is a lag time between the announcement and potential revenue.

I haven't seen any news on the Manitoba core (PXA800F and PXA800EF), for example. I mention this because I think it's one of Intel's most important products from that division. I suspect that products aren't even out with these processors, yet, and they have not yet contributed to revenue. I would look at 2004 as being a telling year for the combined networking and wireless communications groups. I know that investors have long since been impatient for results.

[sgolds]

KeithDust2000, I listened to the CC, did not hear anything noteworthy on the flash market at all. There was a comment about that section still losing money, and Intel admitted they were dissipointed in the lack of profit, but did not comment on the market in general. They specifically refused to predict when it would be profitable for them.

Maybe I missed something, but any market comment would have gone by pretty fast. I think that Intel doesn't want to talk about that right now - if pressed, they may have to admit to losing market share.

My theory: In flash, AMD has Intel by the short hairs, and Intel is quite embarrassed.

Oh - they also mentioned that they have competition in the server market. The exchange went something like this (paraphrasing from memory):

Can you comment whether competition is increasing in servers?

Increasing would be the wrong interpretation. We are seeing competition there for the first time.

That's one of the nicest things they ever said about AMD! :)

[Jack Hammered]

KeithDust2000 -

RE WCCG. On page 12 of Intel's filing;
The Intel Architecture operating segment's products include microprocessors, chipsets and motherboards. The Intel
communications Group's (ICG) products include wired and wireless Ethernet products, network processing components and embedded computing products. The Wireless Communications and Computing Group's (WCCG) products include flash memory, application processors and cellular baseband chipsets for cellular handsets and handheld devices.

On December 10, 2003, we announced that we would be consolidating certain communications-related businesses within ICG and WCCG into a single organization, the Intel Communications Group. This reorganization is effective for 2004. As the reporting period for this earnings release is as of December 27, 2003, the operating segment results for these communications-related businesses are presented under the organization structure that existed as of December 27, 2003.

The "all other" category includes acquisition-related costs, including amortization and impairment of acquisition-related intangibles, in- process research and development and the fourth quarter of 2003 charge for impairment of goodwill of $611 million. In addition, "all other" includes certain corporate-level costs and operating expenses, including a portion of profit-dependent bonus and other expenses that are not allocated to the operating segments. The results for 2002 included an impairment of identified intangible assets of $127 million as well as a charge of $106 million related to the wind down of the Web hosting business.

Jack