AMD has lost several customers lately, including Gateway (NYSE: GTW - news), IBM (NYSE: IBM - news) and Micron Technology (NYSE: MU - news). The company isn't expected to come out with next-generation Athlon processors until next summer. Also, its Hammer processor technology has been delayed until late 2002.
dailynews.yahoo.com
Thursday October 25 01:24 PM EDT
Struggling AMD Going After Sealed Court Evidence
By Tim McDonald, www.NewsFactor.com
The ongoing battle between computer chip makers Intel (Nasdaq: INTC - news) and Advanced Micro Devices (NYSE: AMD - news) moved out of the laboratories and board rooms and into the courtroom this week. AMD filed a lawsuit that seeks to uncover sealed evidence in a legal case that Intel won two years ago.
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The purpose of the motion, filed in the Northern California District Court in San Jose, is to induce an antitrust probe by the European Commission (news - web sites), with which AMD has filed a complaint against Intel.
The sealed evidence supposedly contains documents and expert testimony that AMD alleges detail the harsh and illegal ways Intel treats uncooperative PC makers.
In the case, Intergraph Corp. (Nasdaq: INGR - news) charged that Intel caused damage to the company through selective withholding of technical documents. The Birmingham, Alabama company lost in court and the evidence was sealed under a protective order. AMD's request is scheduled to be heard November 12th.
'Coercion and Infringement'
Intergraph alleged that Intel was guilty of illegal, coercive behavior, patent infringement and antitrust violations. In its motion, AMD said the evidence will show how Intel, the planet's dominant chip maker, has selectively withheld information from certain companies regarding computing interfaces for Windows computers. Intergraph filed another suit this year alleging patent infringement.
AMD and Via Technologies filed the complaint against Intel with the EC last October, alleging that Intel uses its dominant market position for abusive practices.
Intel said the evidence contains trade secrets, is unrelated to the EC matter, and that AMD's request is unlawful. The EC has the authority to fine companies 10 percent of annual sales if found guilty.
Last year, the Federal Trade Commission dropped its three-year investigation into Intel's business practices.
Intel Lands Counter
AMD and Intel have both been landing solid blows in their well-documented rivalry. Intel is by far the dominant player and half of the so-called Wintel "duopoly" comprising Microsoft's ubiquitous Windows operating system and Intel's chips.
Intel has lashed back only recently at inroads made by upstart AMD with its popular Athlon and Duron processors, which are often cheaper than Intel's offerings. For its part, Intel has released a flurry of new products lately, including the Pentium 4, and in August slashed prices on other chips by up to 54 percent.
AMD Reeling
The price wars, combined with a sagging economy overall and a sharp dropoff in the personal computer industry, have cut into the profits of both companies.
Intel's third-quarter profits, though meeting market expectations, fell to US$106 million or 2 cents per share, compared to $2.51 billion or 36 cents per share for the same time period a year ago.
In September, AMD announced that it would cut 2,300 jobs and close its two oldest fabrication plants in the U.S., a move company officials said would save around $125 million annually.
AMD has lost several customers lately, including Gateway (NYSE: GTW - news), IBM (NYSE: IBM - news) and Micron Technology (NYSE: MU - news). The company isn't expected to come out with next-generation Athlon processors until next summer. Also, its Hammer processor technology has been delayed until late 2002. |
