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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Pareti who wrote (63118)	6/24/1999 4:21:00 AM
From: Gary Ng	Read Replies (1) \| Respond to of 1571200

To All: About Athlon pricing How come they set such a low price for the fastest x86 ? Gary

To: Joseph Pareti who wrote (63118)	6/24/1999 6:00:00 AM
From: survivin	Read Replies (2) \| Respond to of 1571200

Not that bad in germany. Only down 10%. Technology News Thu, 24 Jun 1999, 5:17am EDT Advanced Micro Shares Slide in Europe After Warning of Second-Quarter Loss By Molly Williams Sunnyvale, California, June 24 (Bloomberg) -- Shares of Advanced Micro Devices Inc. traded in Europe fell after it said competition from Intel Corp., AMD's biggest rival in the microprocessor market, will result in a bigger-than-expected second-quarter loss. AMD shares fell as much as 1.7 euros, or 9.9 percent, to 15.5 euros in Frankfurt. The stock has lost about 45 percent of its value since trading as high as $33 in January. The company said it expects an operating loss of about $200 million, including a restructuring charge, and sales of less than $600 million. Some customers that switched to Intel products in the first quarter, when AMD couldn't make enough chips, didn't return, the company said. AMD is counting on its powerful new Athlon chip, formerly called K7, to help it compete with Intel as prices for its low-end K6-2 plummet and Intel unveils faster Celeron chips to regain market share that AMD took last year. ''They are getting hit from all sides,'' said analyst Drew Peck of SG Cowen Securities. ''Pricing is abysmal, they are losing market share and PC unit demand is falling.'' For the second quarter, analysts had expected a loss of 40 cents a share, the average estimate from First Call Corp. Forecasts ranged from a loss of 18 cents to a loss of 73 cents. In the year-ago quarter, AMD reported a loss of $64.6 million, or 45 cents a share, on sales of $526.5 million. The company, based in Sunnyvale, California, also said it expects to ship only about 3.7 million of its K6 chips in the second quarter, compared with forecasts for about 5 million. AMD made its warning yesterday after the close of regular U.S. trading. The company's shares fell 5.5 percent yesterday on concern it would warn about second-quarter results. Recurring Problem AMD had a loss of $118.8 million, or 81 cents a share, in the first quarter. The company originally had been expected to have a profit in that quarter. It warned three times that Intel's price cuts and a production glitch would result in a loss. ''The loss is more than expected, but it could have been worse,'' said Jerry Dodson, fund manager at Parnassus Fund, which owns 300,000 shares of AMD. ''If there is something to be hopeful for, it's that K7 is still on track.'' In the second quarter, AMD has been hammered as National Semiconductor Corp. decided to sell or shutter its Cyrix personal- computer chip business and sold off existing inventory at a steep discount. That, coupled with aggressive pricing from Intel to small PC makers, crushed AMD's prices. ''K6 prices took a beating,'' said AMD Chief Executive Jerry Sanders. He said average selling prices are expected to be in the low $60 range for the quarter, down from $78 in the first quarter, and will continue to decline. ''We need the higher ASPs of Athlon to return to profitability.'' Athlon, AMD's most expensive chip yet, will run at speeds as fast as 600 megahertz, faster than current Intel products. The Athlon will cost $699 for the fastest version, $479 for a 550MHz version, and $324 for the 500MHz version. A 700MHz version is due out in the fourth quarter. Sanders said AMD will ship ''tens of thousands'' of Athlon chips this quarter and ''hundreds of thousands'' in the third quarter. PCs running on the processor are expected to be available in the third quarter.