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Technology Stocks : AMD:News, Press Releases and Information Only!

AMD 219.83

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Dec 1 3:59 PM EST

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To: Petz who wrote (1776)	10/28/1997 9:45:00 PM
From: Paul Engel	Read Replies (1) of 6843

Petz - Re: "IMO, Intel will shoot themselves in both feet this quarter." Last quarter, Intel did the same - introduced SEVERE price cuts. Intel's Q3 CPU unit sales volume were up and their margins were down only slightly - 3 or 4%. Intel attributed that decline to FLASH pricing, for whatever that is worth. On the other hand, AMD lost $67,000,000 (-$31,000,000 after a tax rebate). Thus, AMD was severely hurt - probably compounded by their own yield problems. Intel is doing the same thing this quarter - but they are REDUCING THEIR COSTS almost as fast as they are cutting prices - higher yields, better equipment utilization, more wafers processed/fab which results in lower unit costs. They are agressively switching customers to Pentium II this quarter - up to 45% of unit shipments. Tillamook sales (0.25 micron Tillamook) will add real profits since it sells at a premium but small die size results in lower die costs. Intel has predicted Q4 revenue will be flat to slightly up as will be profits. We'll know in January! Paul

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