Love the photo caption "FIGURE 1. US BEING AS EXCITED AS YOU CAN BE PAYING TAXES".
Oxide are so good at comms.
Oxide are so good at comms.
Why are they paying taxes if they have a huge order backlog. Expand your production capability. Amazon famously had no profits on paper for many years because of their relentless expansion.
"Paying our taxes" in this kind of context is nearly always shorthand for "filling out our tax returns". That part usually takes a substantial hunk of time. The actual payment process is typically writing a check or entering credit card info, which just takes a few seconds.
As to why we're paying taxes: while tax minimization is certainly a thing (and we have taken advantage of things like R&D tax credits), we're paying taxes because we're profitable.
"Compensation Everyone at Oxide makes $275,000 USD, regardless of location."
I guess the question is why not invest those profits to further expand when there are already a backlog of orders to fill.
But on the other hand Huge Congrats being a profitable company! Hardware business is insanely brutal, and having the backlog is great to hear. AMD being investor I hope you guys get Zen 6c and Zen 7c earlier in the future.
Hiring people is hard, takes time, and timing of big sales closing causing income may not line up well enough with the hiring process to offset that income fully.
Their machines are sold for high prices. It’s not small and not cheap. If a buyer pays in a lump sum that can be a big income and Oxide may not be able to time that ideally for tax purposes.
Buying electronics components is funny. Want to buy 1000 units? Price X. Want to buy 100,000 units, price is X/25. But till you can place an order for every component at the 100,000 quantity, you can’t get those price breaks so your cost to manufacture machines is much higher. $400M may let them buy at those bigger quantities and get those price breaks and it may not have been worthwhile to buy inventory at the lower quantity pricing if the investment round was looking to close real soon now. Cash flow is king, and hard, for hardware companies.