Just announced on CNBC
GOOOO AMD and INTC
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. |
