AMD: Q1 earnings < Q4. Chip demand to rise in H2:
Advanced Micro Devices Says Chip Demand to Rise in Second Half
March 23 (Bloomberg) -- Advanced Micro Devices Inc., the world's second-biggest maker of computer microprocessors, expects demand for its chips to rise in the second half of the year as companies buy new computers to replace those purchased in 1999.
Profit in the first quarter will be lower than that in the fourth quarter of 2003, said Henri Richard, vice president for sales, in an interview. Net income in the fourth quarter was $43.2 million, or 12 cents a share, the first profit in 10 quarters.
``We think we'll continue to have favorable retail demand and accelerating investment among companies'' in the second half, Richard said. Profit in the first quarter ``will be in line with the seasonality of our industry'' and below the fourth quarter.
Chief Financial Officer Robert Rivet said in January that he expects Advanced Micro to have a profit for the year. The company last reported an annual profit in 2000. Under Chief Executive Hector Ruiz, Advanced Micro has taken market share from Intel Corp. in flash-memory chips for cellular phones and computers.
Richard said computers bought in 1999 by companies to avoid problems they expected with the calendar move to the year 2000 were now becoming obsolete, which should lead to increased corporate computer purchases this year, particularly for engineering and other data-intensive applications.
In the first quarter of 2003, AMD had a net loss of $146.4 million, or 42 cents a share.
quote.bloomberg.com
So not as good as some expected.
Kind regards,
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