Have you guys checked this out? I thought some of it was pretty funny.
=Advanced Micro Draws Mixed Reviews At Shareholder Mtg >AMD
By Christopher Grimes
NEW YORK (Dow Jones)--The mood ranged from guarded optimism to
near-despondency at the annual shareholders meeting held by struggling
chipmaker Advanced Micro Devices Inc. (AMD) here Thursday.
Executives at the Intel Corp. (INTC) rival, which issued three profit
warnings in the first quarter before finally posting a $128.4 million loss,
told investors to have patience.
"What we are trying to accomplish is a very difficult thing to do," said W.J.
"Jerry" Sanders, chairman and chief executive at AMD. "I'm counseling
patience."
While AMD has made inroads against Intel in the market for low-cost PCs, the
company has failed at key moments to produce enough high-speed chips to meet
demand. And Intel is pursuing an aggressive campaign to regain lost market
share by slashing prices on its low-end Celeron chip.
In his remarks, Sanders said the company corrected the production problems
that were largely responsible for the big first quarter loss. And he said the
company is on track to introduce its next-generation chip, the K-7, in June,
running at speeds of 500, 550 and 600 megahertz.
But for at least one shareholder, the company isn't moving quickly enough.
Describing himself only as an octogenarian, the shareholder asked Sanders if a
turnaround at AMD was near, or if he should simply go out and buy Intel stock.
AMD "represents my worst investment," said the shareholder, who left the
meeting quickly.
"Mine too," said Sanders. "I've invested my life in it."
But other investors seemed to agree with Sanders that AMD could one day share
the giant computer chip market with Intel.
"This should be a good company in three or four years," said Robert Vangor,
an AMD shareholder since the 1970s.
William Milton, a Wall Street analyst at Brown Brothers Harriman, said he
thinks AMD should post a profit by the fourth quarter of 1999.
"I think the firm has a good shot at profitability and being a bigger factor
in the microprocessor business," said Milton, who rates AMD shares a neutral.
"But there's a lot of uncertainty."
In the meeting, AMD shareholders named Atiq Raza president and chief
operating officer of the company and voted to elect Robert Palmer, the former
chief executive of Digital Equipment Corp., to the AMD board of directors. At
Digital, Palmer also fought a holy war against Intel, publicly charging the
company with patent infringement and abusing monopoly power.
In an interview, Palmer said he was "optimistic about (AMD's) chances."
"I think AMD has excellent technology, and I think the marketplace would like
to have alternatives" to Intel's chips, Palmer said. "I admire the company and
the tenacity of the management."
Sanders and the AMD board have frequently come under fire from shareholder
groups and the press. In its April 26 issue, Fortune Magazine listed AMD as
having one of the worst boards of directors, its second straight time on the
list.
AMD shares recently rose 3/16, or 1.1%, to 16 9/16. The stock is down from a
52-week high of 33, reached Jan. 12.
- Christopher Grimes; (201) 938-5253
(END) Dow Jones Newswires 29-04-99
1905GMT
(AP-DJ-04-29-99 1905GMT)
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