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The math somehow does not add up. The order was reduced from $500m to $115m + a penalty of $320m (i.e. $435m in total). So the savings are only $65m for 75% or
by linuxhansl 14y ago
The math somehow does not add up.
The order was reduced from $500m to $115m + a penalty of $320m (i.e. $435m in total). So the savings are only $65m for 75% or $385m less product.
Is this a cash infusion for GlobalFoundries?
- irq 14y agoDon't forget this part: "while agreeing to pay a $320 million penalty for the order change /over the next year/." As Kumar said, they're focusing on liquidity and cash management, and paying that out over the course of a year, as opposed to immediately, makes a huge difference.
- algorias 14y agoThat is because the present value of $320m paid back over a year is less than $320m. Still a pretty rough deal for them, though. Having cashflow issues sucks.