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

To: niceguy767 who wrote (104183)	4/12/2000 9:33:00 AM
From: Scot	Read Replies (3) \| Respond to of 1578005

Niceguy, Thanks for the comments. One thing for sure, it is going to be an exciting several days. -Scot Bright earnings expected from AMD amid chip onslaught By Michael Kanellos Staff Writer, CNET News.com April 12, 2000, 4:55 a.m. PT URL: news.cnet.com Advanced Micro Devices is expected to accomplish later this afternoon a feat that has eluded it for more than a year: a second consecutive quarter of profits. The Sunnyvale, Calif.-based chipmaker is expected to report earnings of 52 cents per share for the quarter, according to a consensus estimate on First Call that continues to climb. A week ago, the consensus rested at 48 cents. Last quarter, AMD reported earnings of 43 cents a share. The consecutive profits, based on sales of its Athlon processor and flash memory, will mark a change from the past. Last year, AMD revealed a massive loss of 81 cents a share for the first quarter, caused primarily by a price war with Intel. AMD reported consecutive quarterly profits at the end of 1998 but amid a price war that decimated the next few quarters. Two successive quarterly losses followed. AMD has not reported a profit for a fiscal year since 1995, but many expect that to change this year. AMD will announce its earnings after the market closes today. Earlier this month, AMD surprised investors when it announced that it expects to report record revenues in excess of $1 billion, or about 10 percent more than last quarter, a reversal of the seasonal trend when sales declined after the end of the year. A substantial portion of AMD's revenue and profits come from sales of its touted Athlon processor for performance PCs. The chip has met with strong acceptance among computer aficionados and PC manufacturers. Later in the second quarter, the company will release a new version of the chip, code-named Spitfire, for the budget PC segment. A high performance model called "Thunderbird" will also appear mid-year. Thunderbird is expected to run at 1.25 GHz at launch, according to sources close to AMD. The company is also coming out with a more advanced version of its K6-2 chip, called the K6-2+, for notebooks this month. HP is slated to come out with a notebook using the chip on April 17. Still, even AMD's supporters warn that it cannot rest on its accomplishments. Although competitor Intel was hampered by supply problems earlier in the year, the company is said to be digging out from a shortage of Pentium IIIs. More details will be known when Intel reports its earnings on April 18. Further, new Celerons and a 700-MHz Pentium III for notebooks will hit shelves later this month. In addition, Intel is preparing to release a chip, code-named Willamette, toward the third quarter. When coupled with Rambus memory, Willamette will surpass Thunderbird in performance, according to some. "It will be like there are two classes of machines," Peter Glaskowsky, an analyst at MicroDesign Resources, said earlier this month, "There will be no comparison." Some analysts have speculated that a price war could erode profits.