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

AMD 214.11

+3.9%

3:59 PM EST

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To: Ali Chen who wrote (4113)	1/31/1998 4:28:00 PM
From: Kevin K. Spurway	Read Replies (1) of 6843

Since the latest rantings seem to be about CyberMax I'll offer my two cents. Obviously, Im not too happy about the situation. CyberMax was one of the earliest K6 adopters, and they've done a lot to market their K6 machines. In fact, I own one, and I'm sure its faster than any 266 mhz piece of crap IBM or Compaq will crank out. The problem here is a yield issue, and a contractual issue. The fact that CyberMax isn't getting the CPU's AMD believed it could ship is just a reflection of its underlying yield problems. AMD has undoubtedly contractually bound itself to ship certain volumes to Compaq and IBM, based on yield projections that AMD has been unable to fulfill. Since AMD can't very well go breaking the contracts, CyberMax gets the short end of the stick. That's bad business, but unfortunately at this point it looks like AMD has little choice. We'll see. Kevin

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