<<April 7, 1999--Advanced Micro Devices
announced today that shipments of AMD-K6®-2 processors, at 4.3 million units in its just-completed first quarter, were substantially below plan. The company also said that severe price competition, especially in processors with frequencies below 400 megahertz (MHz), caused average selling prices (ASPs) for AMD-K6 family
processors to decline to $78. Based on a preliminary analysis, first quarter revenues for the company are expected to be
approximately $630 million. Last year's comparable quarter produced revenues of $541 million. In the immediate-prior quarter,
revenues were a record $789 million.>>
Based on breakeven point around 770 millions for Q1, loss per share would be around -0.95, without charge!
<<The company said that previously reported yield problems that impacted December production of AMD-K6-2 processors
continued to take a heavy toll on production volume and mix through the first eight weeks of 1999 as the earlier material worked through the manufacturing process. Wafer starts containing the design enhancements put in place to address these yield issues positively impacted both unit volume and mix in fiscal March, the last five weeks of the first quarter. AMD also reported that March shipments of AMD-K6-2 processors exceeded shipments in January and February combined. On that basis, the company said it expects to meet its goal of shipping 20 to 25 million units for all of 1999. Demand for AMD-K6 family processors remains strong, and customer relationships remain intact. Based on March production results and the planned production mix of AMD-K6-2 and AMD-K6-III processors, and initial shipments of AMD-K7(TM) processors scheduled for
June, the company believes that ASPs will improve this quarter>>.
These statements combined with pricewatch data say that the yield problem does apear behind AMD NOW. |
