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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (31321)	4/28/2000 11:57:00 AM
From: Peace	Respond to of 50167

AMD CEO Sanders back on top as profits soar By Eric Auchard NEW YORK, April 27 (Reuters) - Jerry got his mojo back. Jerry Sanders, chairman and CEO of Advanced Micro Devices Inc. and Silicon Valley's longest-enduring showman, has retaken the spotlight with the most profitable quarter in the 31-year history of AMD, after several down-on-his-luck years.Defying the critics, Sanders has led AMD shares to a five-fold increase over the past year as he delivered on promises to deploy the latest generation of chip production technology, expand manufacturing capacity, and deliver the most advanced generation of PC chip products now available. "We've done everything we said we would do," Sanders told shareholders attending the company's annual meeting here on Thursday as he reviewed the events of the past year and delivered his rosy view of the future. "Our current outlook is outstanding," Sanders said of the turnaround in the company's fortune. "The dark days...are behind us," he said. Numbers tell the story: First-quarter sales rose 73 percent to $1.1 billion, driven by demand for its Althon high-speed microprocessors for PCs and flash memory chips for cellphones "our first ever giga-buck quarter," he quipped. The latest quarter's net income of $189 million reversed a loss in the year-earlier first-quarter of 128 million. CEO SAYS SECOND QUARTER PRODUCT LINES LARGELY SOLD OUT There's more in store, Sanders said. "Based on current market conditions, I am now sure we can meet or exceed last quarter's operating results - and I expect a very strong second half," he said in his presentation to shareholders. The turnaround couldn't be more stark: Three weeks into the current second quarter, Sanders told Reuters that AMD is already "sold out" for the period on all but a few of its semiconductor product lines, including: Flash memory that gives electronics "instant on" capabilities and is in heavy demand for use in cellphones; K6 microprocessors, its basic line, used in consumer and value-oriented commercial desktops and notebook computers; ** Original line of Althon K7 microprocessors amounting to 1.2 million units. Sanders said he was highly confident AMD could sell its supply of yet-to-be-released Duron chips, expected in June, aimed at the sub-$1,000 PC market. BREWING SHAREHOLDER REVOLT DISSIPATES AS STOCK NEARS RECORD The latest results have stunned many on Wall Street -- exceeding analysts' earnings and revenue forecasts by two times recent levels. Shares of AMD touched new record intraday levels today of 87-1/4 before subsiding to close at 84-1/4, up 2-1/2 points on the New York Stock Exchange. The stock has defied the sharp declines of many technology stocks this year. AMD's performance has helped quell a long-simmering revolt by dissident shareholders to push out the man many credit with pioneering mass marketing in the computer chip industry. At the annual meeting, a proposal by the California Public Employees Retirement System (CalPERS) to elect an independent director as the chairman of AMD was voted down by a 4-to-1 ratio by shareholders represented at the meeting.The mood of the meeting differed sharply from the 1999 annual meeting held in the same New York hotel. The stock then languished at 16-1/2, near the bottom of a three-year slump. A year ago, Sanders confronted the meeting as an isolated optimist amid a chorus of doubters. A disgruntled shareholder had stood up to the feisty chief executive and declared to the roomful that, "AMD represents my worst investment." AMD then was struggling with manufacturing miscues, hemorrhaging cash on investments in future plant capacity and had yet to release its K7 Althon chip, a smash success now in hot demand for running the most powerful PCs on the market. SANDERS, THE UNSTOPPABLE OPTIMIST, SEES MORE IN STORE AMD has fought its way to become a microprocessor supplier to nine of the world's top 10 PC makers. The one remaining holdout, No. 2 ranked PC maker Dell Computer Corp., relies exclusively on Intel and is Intel's largest customer. Both AMD and Dell officials have confirmed that they have held regular talks a possible relationship, but have announced nothing so far. Analysts have speculated that Dell may announce an Althon-based consumer PC as early as May. "I am the eternal optimist," Sanders said of a potential tie. "My optimism usually pays off," he said, but added that he was being careful not to preannounce any deal with Dell. At last year's annual meeting, Stan Blustain, a holder of "several thousand" shares of AMD since 1998 purchased at prices between 14 and 29, had asked Sanders what he was going to do to increase shareholder value. Sanders told him to come back and ask that question at this year's annual meeting. Blustain returned on Thursday a happy man. "The question I asked then was irrelevant," the happy shareholder said. His question at this year's event was whether Sanders and the AMD board would consider setting a small, quarterly dividend - rare in the volatile technology world -- as a gesture of confidence in the long-term stability of AMD. Sanders said that once the company succeeds in paying down roughly $900 million in debt sometime next year, he would recommend that the board consider the dividend move. Afterward, Blustain went up and congratulated Sanders on his company's performance. "Sanders told me to come back next year and I'd be smiling once again," the shareholder said.