Article: AMD's Large Debt Mounting Up Fast

[Wombat2]

http://www.dailytech.com/article.aspx?newsid=7036

 

[Twisted_Sister]

Not to add to the doom and gloom, but the listed debt is only a part of the problem.

There are literally hundreds of millions to billions in off-balance sheet obligations. Most of these related to contractual capex spending. Read the fine print in the 10-K, it's about 1.8-$2B a year (numbers off the top of my head).

 

[dasickninja]

Posted already.

 

[Ycon]

If their debt pile builds up higher, their stock price wont have enough room to drop any more!!!!!!!!!!!!!!!1111111111!!one

Thats as funny as it can get, sorry. :roll:

 

[Viperabyss]

One day you all will grow up and get lives.......Maybe. :roll:
I tend to worry only about my debt, I could care less about some companies. When you buy a 5 billion dollar company and you dont have 5 billion dollars. You go into debt. No news here. :idea:

one day you'll grow up and learn to write constructive posts..........Maybe :roll:

 

[SockPuppet]

One day you all will grow up and get lives.......Maybe. :roll:
I tend to worry only about my debt, I could care less about some companies. When you buy a 5 billion dollar company and you dont have 5 billion dollars. You go into debt. No news here. :idea:

GTFO you delusional c*nt.

 

[Ycon]

Nice one, captain obvious.

 

[ElMoIsEviL]

One day you all will grow up and get lives.......Maybe. :roll:
I tend to worry only about my debt, I could care less about some companies. When you buy a 5 billion dollar company and you dont have 5 billion dollars. You go into debt. No news here. :idea:

I don't give these posts much publicity normally. Although the article makes for a good case one cannot help but notice that this seems to be a cycle AMD always goes through.

When Intel has the top product AMD almost dies. This is of course due to the fact that AMD are the smaller of the two companies by a WIDE margin.

 

[cubicleslave]

I think AMD is going to be ok, or at least not going out of business. All they have to do is service their interest payments, not pay off the debt outright. Kind of like you and I making the minimum payment on our credit card bills. When Barcy gets out, AMD will be in a much better competitive position and will at least stop losing money, bringing in new cash to service their interest payments. How much cash, I don't know. I'll let more knowledgeable posters make that prediction. As for the convertible senior notes that they just sold to raise $2.2B, they don't need to pay back one red cent until their stock hits $42 (according to the article linked by the OP). That's $2.2B to tide them over (for interest payments and operational cash). And if and when the stock hits $42, I am sure they will be a much stronger company and be in even better shape to handle their debt. So I don't think either AMD or (obviously) Intel is going out of business anytime soon. I say, don't feel sorry for either company, they're both in business to make money, period. Best thing you can do is buy the processor that gives you the best performance for your money, regardless of which company makes it. After all, that's how we keep them honest, and how the free market works, right? Let's play ball!

 

[No1sFanboy]

Stating the obvious, but Barcelona better be competitive or I smell some sort of restructuring. Maybe spin ATI back off again. I don't think R600 is even a big factor for DAAMIT's big picture.

I'm sort of divided here between between being more concerned for Tony Soprano's mounting debts or AMD's. Hopefully Amd's big gamble pays off.
Sorry, Sopranos always sticks in my head the next day. :roll:

 

[1Tanker]

Stating the obvious, but Barcelona better be competitive or I smell some sort of restructuring. Maybe spin ATI back off again. I don't think R600 is even a big factor for DAAMIT's big picture.

I'm sort of divided here between between being more concerned for Tony Soprano's mounting debts or AMD's. Hopefully Amd's big gamble pays off.
Sorry, Sopranos always sticks in my head the next day. :roll:

There both soap operas now.

 

[BaldEagle]

I think AMD is going to be ok, or at least not going out of business. All they have to do is service their interest payments, not pay off the debt outright. Kind of like you and I making the minimum payment on our credit card bills. When Barcy gets out, AMD will be in a much better competitive position and will at least stop losing money, bringing in new cash to service their interest payments. How much cash, I don't know. I'll let more knowledgeable posters make that prediction. As for the convertible senior notes that they just sold to raise $2.2B, they don't need to pay back one red cent until their stock hits $42 (according to the article linked by the OP). That's $2.2B to tide them over (for interest payments and operational cash). And if and when the stock hits $42, I am sure they will be a much stronger company and be in even better shape to handle their debt. So I don't think either AMD or (obviously) Intel is going out of business anytime soon. I say, don't feel sorry for either company, they're both in business to make money, period. Best thing you can do is buy the processor that gives you the best performance for your money, regardless of which company makes it. After all, that's how we keep them honest, and how the free market works, right? Let's play ball!

Under the loan covenants with MS (Morgan Stanley not the other MS) for the ATI purchase AMD would have to pay back $1.1B of the debt from the ATI purchase (This may have been negotiated downward to some other figure since MS is doing the bond offer but we have not heard yet). So after paying off MS the net increase in their debt is only $1.1B plus expenses of a couple million for the bond offering (probably a total of $1.4B). The net cash to AMD from the bond sale is likely to be around $800M which should last until Mid 2008 if AMD reduces their CAPEX and overhead as planned. The latest $611M quarterly loss is unlikely to be repeated even though sales are expected to drop next quarter because of planned inventory reductions.

 

[SockPuppet]

Stating the obvious, but Barcelona better be competitive or I smell some sort of restructuring. Maybe spin ATI back off again. I don't think R600 is even a big factor for DAAMIT's big picture.

I'm sort of divided here between between being more concerned for Tony Soprano's mounting debts or AMD's. Hopefully Amd's big gamble pays off.
Sorry, Sopranos always sticks in my head the next day. :roll:

It's easy to feel compassion for T, but then I remember he IS a stone-cold killer. He deserves whatever death he gets in the coming months.

 

[bonkers]

http://biz.yahoo.com/e/070430/amd8-k.html


Form 8-K for ADVANCED MICRO DEVICES INC

 

[turpit]

http://www.dailytech.com/article.aspx?newsid=7036

Any one want to bother logining in and replying to Xavian that AMD is not floating the 2.2 billion in senior bonds to "....build more fabs"

 

[BaldEagle]

http://www.dailytech.com/article.aspx?newsid=7036

Any one want to bother logining in and replying to Xavian that AMD is not floating the 2.2 billion in senior bonds to "....build more fabs"

AMD is floating the bonds to survive 2007 without declaring BK. 8O Build more Fabs Ha, Ha, Ha, thats a good one. :lol: :lol:

 

[bonkers]

http://biz.yahoo.com/ap/070430/amd_ratings.html?.v=1


Moody's Raises Rating on AMD Debt

 

[xpresso]

I think AMD is going to be ok, or at least not going out of business. All they have to do is service their interest payments, not pay off the debt outright. Kind of like you and I making the minimum payment on our credit card bills. When Barcy gets out, AMD will be in a much better competitive position and will at least stop losing money, bringing in new cash to service their interest payments. How much cash, I don't know. I'll let more knowledgeable posters make that prediction. As for the convertible senior notes that they just sold to raise $2.2B, they don't need to pay back one red cent until their stock hits $42 (according to the article linked by the OP). That's $2.2B to tide them over (for interest payments and operational cash). And if and when the stock hits $42, I am sure they will be a much stronger company and be in even better shape to handle their debt. So I don't think either AMD or (obviously) Intel is going out of business anytime soon. I say, don't feel sorry for either company, they're both in business to make money, period. Best thing you can do is buy the processor that gives you the best performance for your money, regardless of which company makes it. After all, that's how we keep them honest, and how the free market works, right? Let's play ball!

I think AMD is far from OK, if they don't blow Intel's 45 nm offerings out of the water, they will not make good profits on their 65 nm investment which means AMD will not have money to invest in 45 nm and and pay off debt. Simply put, Hector bet the company on 1) buying ATI and 2) Barcelona both benefits are yet to show yet. The next 6 months will tell for sure though as Intel is not standing still and neither Nvidia. AMD is in a way much tougher spot than anytime in the past in contrary to what some people want to believe in terms of a major pinch point in their history. Their business model is crrently flawed, and that's why they have an executive task force trying to fix it, headed by your truely Hector :?

 

[turpit]

done.

And to keep their booties afloat while they tinker with designs and accidentally find an architecture that works.

:lol: :lol: :lol:

That is just sooooooo mean! :lol:

 

[dasickninja]

I found this incredibly stupid statement in the comments section:

A fair point...but AMD finished converting all new manufacturing to 65nm/300mm (all wafers at Fab 36, more than 50% of production now, are 65nm) last month...and many of those new lines are already spitting out K10s. AMD expects to be 100% K10 by this time next year.
This is EXTREMELY fast (Intel is only 40% C2D at the moment).

Que?

 

[Viperabyss]

I found this incredibly stupid statement in the comments section:

A fair point...but AMD finished converting all new manufacturing to 65nm/300mm (all wafers at Fab 36, more than 50% of production now, are 65nm) last month...and many of those new lines are already spitting out K10s. AMD expects to be 100% K10 by this time next year.
This is EXTREMELY fast (Intel is only 40% C2D at the moment).

Que?
that comment is exactly the same as claiming "following Vista's launch, 64bit transition will be completed in several months".

Wishful thinking...

 

[dasickninja]

AMD isn't even fully on 65nm. Methinks that poster read too much Shakirou.

 

[reconviperone1]

One day you all will grow up and get lives.......Maybe. :roll:
I tend to worry only about my debt, I could care less about some companies. When you buy a 5 billion dollar company and you dont have 5 billion dollars. You go into debt. No news here. :idea:

WORD!

 

[reconviperone1]

One day you all will grow up and get lives.......Maybe. :roll:
I tend to worry only about my debt, I could care less about some companies. When you buy a 5 billion dollar company and you dont have 5 billion dollars. You go into debt. No news here. :idea:

GTFO you delusional c*nt.Dude, come on, show a little respect to the ladies, she deserves an apology.

 

[turpit]

One day you all will grow up and get lives.......Maybe. :roll:
I tend to worry only about my debt, I could care less about some companies. When you buy a 5 billion dollar company and you dont have 5 billion dollars. You go into debt. No news here. :idea:

GTFO you delusional c*nt.Dude, come on, show a little respect to the ladies, she deserves an apology.

Viper

MrsBytch isnt a lady. IT is MMM...MadModMike, a semi-reformed former horde acolyte who was banned from THG forums, and now logs in under the puppets MrsD, MrdBytch, and one or 2 others I cant even remember anymore.