YoY means Q4 2015 compared with Q4 2014.
I don't understand this comment -- how does it apply to anything I posted? I know what YoY means.
Thank you. I'm assuming Russian replyed to me, but I have him on ignore.
Good to know. :thumbsup:
Ok... RIP AMD. They fought well, but they moved to other sectores toó late
I wish you to make thousands of dollars on shorting the stock over the coming 5 years. :awe:
Care to explain how paying a take-or-pay charge can be worse than taking goods for free and write it down?
What does that even mean? AMD gets nothing for free.
Option 1 - You are obligated to purchase 10 seeds of apple trees whether you will sell 100 apples or not. If you only buy 9 seeds of apple trees, you get penalized $100 since your contract stipulates that you will pay a penalty unless you buy a minimum of 10 seeds.
Option 2 - You bought 10 seeds of apple trees as per the contract but you cannot sell 100 apples at regular prices. So you negotiate a lower price and sell the remaining apples at a reduced price. The difference between the normal price you were projecting to sell and the reduced price is the inventory write-down. The loss due to 'inventory' write-down is $70.
You save $30 against option #1.
"DEFINITION of 'Inventory Write-Off'
An accounting term for the formal recognition that a portion of a company's inventory no longer has value. An inventory write-off may be handled in the company's books by charging it to the cost of goods sold or by offsetting the obsolete inventory allowance. Most inventory write-offs are small, annual expenses; a large inventory write-off (such as one caused by a warehouse fire) may be categorized as a non-recurring loss.
If inventory still has some value, it will be written down instead of written off.
Read more: Inventory Write-Off Definition | Investopedia
http://www.investopedia.com/terms/i/inventory-write-off.asp#ixzz3ohlwL6AL
Do you think AMD will
throw away $65 million of parts just like that? That's not what an Inventory Write Down means.
Yeah, that's why I'm not exactly aboard the hype train that a lot of the pro-AMD posters are on. AMD is literally competing with two of the world's best CPU core teams (Intel Converged Core Design Org. in Hillsboro, Oregon & Israel Design Center in Haifa) with virtually unlimited budget and easily the world's best process technology.
Zen should be an improvement from the really bad construction core line, but I doubt it will be anything close to Skylake in terms of power/performance. They might be able to get to Haswell-levels of performance, but I think they will need considerably higher power to do so which kind of wrecks it for everything but high-perf desktop (which Intel can easily counter by being more aggressive in which server dies it deigns to bring to the HEDT platform).
AMD really needs to get itself out of Intel's way, and I think they had said this was their intention a while ago, but they've gone full circle and are now talking about how a brand new, clean-slate architecture is going to help them be more competitive against Intel.
Good luck to AMD, but this looks like a losing long-term strategy.
I don't think anyone who understand business expects AMD to outperform Intel and/or NV long-term. However, if AMD can figure out a way to generation positive net free cash flow, it doesn't have to outright outperform Intel/NV.
If you think about it, you propose that AMD just gives up because you haven't provided an alternative strategy for them to pursue. So if you think they have no chance of ever making $ in CPUs, APUs or GPUs, what's the point of AMD existing at all?