Replies to post #40584 on Advanced Micro Devices Inc (AMD)

[ChrisC_R]

DTR Centrinos:

http://www.theinquirer.net/?article=17438

AS INTEL HAS DELAYED its mobile PCI express Centrino chipset notebook manufacturers will go for other tactics in order to supply PCI Express graphics......... for the real McCoy, you will have to wait until early 2005 to get a chipset for Centrino/Dothan CPUs and have a non-desktop replacement notebook with both decent battery life and PCI Express.

Many manufacturers are "hurt" by Intel's delay of the mobile chipset but can’t argue with Intel. Intel plays and everyone obeys, that's a familiar story for decades now.

While they can use AMD chips, the Centrino brand is so good and spicy with a smell of profit in the dawn that they just can't or won't resist. µ

[dacaw]

Inventory Valuation

Some real misunderstanding of Accounting 101 going on w.r.t what physically is in AMD's inventory assets.

Notice that FASB rules mandate that inventories are carried on the books at the LOWER of cost or market value.

Thus, if you have a pile of 2001 playboy calendars sitting on the shelves its likely that their inventory value is about 10c even if your cost was $1 UNLESS they include Dick Cheney's bit-on-the-side.

For high markup items like chips nearly all of the inventory will have lower cost than market value, then the pieces in inventory will (99% probably) be at the cost of wafer+fab costs+packaging (if finished parts). For Athlon64 parts this may be $50ea. Then a $50m inventory will represent 1m parts.

AMD had a stated inventory of $726m last quarter, compared to $692 in the 1st qtr and $697m at the end of 2003. A lot of that must be wafers and unpackaged die. The rise of $34m in inventory in the last qtr I take as very good news and an indication that yields were substantially up.