Elmer - AMD has long term Flash contracts that insures their superprofitability from now until forever !!
Yeah right !!!!
Check out this !
AMD is setting up their EXCUSES for missing their quarter ahead of time !!
I think Flash customers will AVOID AMD like the PLAGUE in the future - knowing that AMD will sue them if they fall upon hard times.
biz.yahoo.com
Tuesday April 3, 5:03 pm Eastern Time
Press Release
AMD Files Suit Against Alcatel Business Systems
AMD Says Alcatel in Breach of Contract on Flash Memory Products
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 3, 2001--AMD announced today that it has filed suit against Alcatel Business Systems seeking damages for breach of a contract under which AMD supplies flash memory products to Alcatel. The suit was filed in the Supreme Court of the State of New York.
AMD and Alcatel entered into a long-term agreement in 2000 under which Alcatel agreed to purchase and AMD agreed to supply flash memory products over a two-year period.
``After several months of negotiation, AMD reluctantly took the step of filing a lawsuit as a last recourse after Alcatel refused to honor its commitments under an agreement that heretofore was hugely beneficial to Alcatel,'' said Walid Maghribi, senior vice president of AMD and president of the company's Memory Group. ``AMD met all of its obligations to Alcatel, passing up opportunities to sell its products to other customers at prices significantly higher than those provided for in the agreement.''
Maghribi noted that the agreement was designed to be a ``win-win'' proposition for both Alcatel and AMD. ``The agreement is eminently fair to both companies in that it assures Alcatel of a continuing supply of flash memory products even when these products are in extremely short supply.''
Maghribi said that long-term supply agreements between AMD and its flash memory customers are very important in providing a reasonable basis for investing in production capacity. ``Long-term supply agreements benefit both AMD and its customers because they give us some assurance that when we invest billions of dollars in new production facilities, we will have customers for our products. Our customers benefit because they are assured of adequate supplies at reasonable prices, and we benefit by being able to make investments in production capacity based on our customers' needs. In these circumstances, it is essential that both AMD and its customers honor their commitments.''
Maghribi also noted that AMD is satisfied with the current status of all other long-term agreements with customers. ``Except for Alcatel, all of our other long-term customers have recognized the mutual benefits that result from these agreements,'' Maghribi concluded.
About AMD
AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor's 500 company, produces microprocessors, flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $4.6 billion in 2000. (NYSE:AMD - news).
Visit AMD on the Web
Additional press releases and information about AMD and its products are available at www.amd.com.
Note to Editors: AMD, the AMD logo and combinations thereof are trademarks of Advanced Micro Devices, Inc. in the United States and other jurisdictions.
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