To: Scot who wrote (88545 ) 1/20/2000 1:20:00 PM From: Scot Respond to
Also from briefing.com:Advanced Micro Devices (AMD) 41 closed: This chip maker has a history of over-promising and under-delivering, but based on its fourth quarter earnings results, it's looking as if it is beginning to understand how the game must be played: under-promise and over-deliver. Advanced Micro Devices scored big with its latest earnings report, posting a profit of $0.43 per share which was significantly better than the First Call mean of $0.01 and a year-ago profit of $0.15 per share. Revenues rose 23% to $968.7 mln and were up an impressive 46% on a sequential basis. The company acknowledged there was strong demand across all of its product groups, and that the success of its Athlon processor was integral in driving the better than expected results. In fact, Athlon sales accounted for more than half of its greater than $300 mln sequential sales gain. Sales at its flash memory and communications group grew 33% and 34% respectively on a sequential basis, reflecting the broad demand for semiconductors in communication applications. Although AMD said an anticipated seasonal slowdown should lead to flat to slightly lower sales in its first quarter, that outlook was tempered by the company's bullish view of its next fiscal year. Led by strong consumer demand for PCs that should be most evident in the second half of the year, AMD expects that overall PC processor unit shipments will increase substantially from 1999 levels. Moreover, it anticipates sales of its Athlon processors will increase, thereby resulting in a richer product mix and higher blended ASPs for PC processors. Communication group sales are expected to grow by 50% yr/yr in the first quarter while memory group sales should more than double for the same period. In short, AMD doesn't see much shortage in demand for its products. Coupled with this quarter's surpisingly good results, that outlook should mean that its stock will remain in demand, too. Presently, shares of AMD are indicated 3 1/2 points higher to a level not seen since 1997. However, if it continues to deliver the goods like it did this quarter, shares of AMD are likely to boldly go where they have never gone before.-- PJO
