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Technology Stocks : AMD:News, Press Releases and Information Only!
AMD 214.990.0%Dec 26 9:30 AM EST
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To: Ritz who wrote (1101)10/7/1997 7:22:00 PM
From: Yougang Xiao   of 6843
 
All, CPQ to use K6 per WSJ interactive edition:

***********************

Compaq To Use Advanced Micro K6 Chip In Some
Sub-$1,000 PCs

NEW YORK (Dow Jones)--Advanced Micro Devices Inc. (AMD) is
expected to announce that it will ship 250,000 of its K6 chips to Compaq
Computer Corp. (CPQ), the No. 1 personal computer maker.

The chips would be used during the first half of 1998 in Compaq PCs costing
$999 and $799, according to Ashok Kumar, an analyst at Southcoast Capital.

A 233-megahertz version would ship in the first quarter, followed by a
266-megahertz version in the second quarter, Kumar said.

But AMD is expected to receive only $80 and $90 per chip, which Kumar
described as "commodity-type pricing."

"At less than $100 a pop, you'd have to sell a boatload of these to make a
profit," he said. "There's no upside in revenues" out of the deal for AMD.

An AMD spokesman said the company doesn't "announce products for our
customers."

AMD has won other top-tier PC customers since it began producing the K6
chip, including International Business Machines Corp. (IBM) and Digital
Equipment Corp. (DEC).

But the company has recently missed production targets for the K6, which is
seen as equal in performance to some of Intel Corp.'s (INTC) Pentium chips.

-Chris Grimes
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