AMD expects profit by year's end
Chairman Sanders says Q3 bookings are rising
By Tom Murphy, CBS MarketWatch
Last Update: 2:03 PM ET Jul 29, 1998
Also see Tech Report
SAN FRANCISCO (CBS.MW) -- Advanced Micro Devices Inc.
expects to return to profitability by the end of the year thanks to the rapid
growth of its microprocessor sales, Chairman Jerry Sanders said
Wednesday.
In an interview at the Robertson Stephens
Semiconductor Conference, Sanders also offered
a rosy outlook on the demand for AMD's (AMD)
other chips. "Definitely, the third quarter is better
than the second quarter as far as bookings go," he
said. "There's more activity, but prices are still
under a lot of pressure."
Asked if he expected to turn a profit by the fourth
quarter, he replied, "You bet," and added that the
profit would stem "almost entirely" from the rising
demand for microprocessors that run at the heart
of personal computers. "In fact, what could delay
that [profit] is if the other businesses have a downturn, which we are not
currently expecting," he said.
AMD shares fell 4.9 percent, closing down 13/16 at 15 11/16 just before
Sanders' remarks hit the news wire.
The chip maker reported a wider-than-expected loss of 45 cents a share
for its second quarter and is expected to lose 13 cents in its third fiscal
quarter, according to analysts surveyed by Zacks Investment Research.
Currently, 17 of the 24 analysts who track the company rate it a "hold"
because it hasn't turned a profit since the second quarter of 1997.
Even with its recent woes, AMD is projected to earn $2.05 a share in
1999 as sales swell to $4 billion from an estimated $2.7 billion in the
current fiscal year, according to Dan Niles, an analyst with BancAmerica
Robertson Stephens.
cbs.marketwatch.com
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Good jub on AMD's part to counter TK's commnets today!! |
