Originally posted by: Nemesis 1
Originally posted by: Viditor
So anyway, back to the topic at hand...
Some of the reasons I was saying that AMD couldn't go under (baring a catatrophe) are:
1. The terms of their refinanced loan (acquired this quarter to cover the expensive short term loan they had for ATI) reduces their payments drastically.
2. The major buildout portion of Fab 36 is now paid for, as is a good chunk of the Fab 38 conversion
3. Their COGS (Cost Of Goods Sold) on dual core chips is drastically reduced as 80%+ are now 65nm.
4. They have an extra $700-900 Million of unearned income arriving (from the 130nm equipment sale to the Russians, and the subsidy from the German government) as well as the beginning of the income from the 90nm equipment sales.
While it's true that they still have to spend Cap-Ex money on the 45nm buildout, they are nowhere near the financial dire straights people imagine...not to mention that they have quite competitive products starting in the channel now.
Come on Viditor your always doing this . On the Russian deal
Industry experts believe that the equipment will cost Angstrem about $250 - $300 million and sources close to the deal believe that the budget ?of the whole project? may increase up to $700 million in the following years.
$250-300 million . Maybe 700 million following years . MAYBE the whole deal be worth 700 million . See the differance in the real world numbers than the ones you produced.
Mate, you're just not paying attention...you completely skipped over the "and the subsidy from the German government" which is also worth ~$370 Million.
