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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: pgerassi who wrote (15635)	10/23/2000 6:28:13 PM
From: Maverick	Respond to of 275872

Europe Looking Good to AMD 10/23/00 electronicnews.com MPU firm blames Intel’s woes on low-end chips By Richard Bruner "There was an inordinate amount of interest in what was going on in Europe because of the warnings issued by Intel and Apple. We did not see that weakness in the markets we serve." That was an Advanced Micro Devices Inc. (AMD) spokesman's explanation, in part, for the company's remarkable third-quarter earnings performance. Interestingly, it coincided almost precisely with what Malcolm Penn had told Electronic News (Oct. 2, "Is the Euro Really to Blame for Intel's Woes?"). In his interpretation of Intel's problems in Europe, Penn said AMD has been gaining sizable ground on its large competitor in Europe. He said Intel had some delays in some of its higher-end chips. AMD stepped in and took advantage of what appeared to be a gap in Europe's higher-end chip market. "What we hear is that the weakness (in Europe) is at the low end of the business," the spokesman said. "Particularly the very low end of the business—boxes that, in American dollars, would be less than $600. It turns out that, because of the absence of a UMA (unified memory architecture) chipset, we didn't have a really competitive offering in that business and we were not about to cut Duron prices to chase the business." "And as a result, and also because of currency conditions, customers wanted more product for their money. People said, 'If I'm going to spend the money, I'd rather have a high-performance product.' Athlon is our high-performance product. We sold a lot of Athlons and the reports—the feedback—we get from resellers and from OEMs is that their systems based on Athlon processors sold very well." Ironically, a shortage worked to AMD's advantage in Europe. "Our chipset supplier was late," the spokesman said. "So, for the lowest end of the market, we didn't have a suitable value proposition for our customers. That actually worked well for us. So we did very well in Europe." International sales in the just completed quarter were 57 percent of AMD's total sales. Although the company does not break out sales by region, the spokesman said that a substantial part of that 57 percent is in Europe, including flash and PC microprocessors. Sunnyvale, Calif.-based AMD is bullish about the future, too. "We didn't make projections for 2001 and we won't until later in the quarter, other than to say we're looking for substantial growth and we think the industry is healthy overall and we're going to be even more competitive with new products that we have coming out that should get us into new market segments," the spokesmand said. New market segments for AMD include versions of Athlon and Duron that are optimized for the mobile market. "We'll have very high-performance processors for laptops that have excellent power management features with outstanding performance," he added. "So we should move into a higher end of the laptop business. We should be able to address the commercial segment and the server business, which we have not been able to do in the past. And with the UMA-enabled chipsets for the Duron processor, we'll cover the whole range of our customers' offerings. And we think the underlying strength—barring the whole economy going to hell, which we don't think will happen—we're looking for another strong year."

To: pgerassi who wrote (15635)	10/23/2000 6:37:04 PM
From: kash johal	Read Replies (3) \| Respond to of 275872

Pete, re:"Their MO has been to run a pilot line (due to the contamination problem, it must be in a separate FAB and I do not think one is yet ready to begin testing the equipment) and then copy that line exactly in all the fabs to be converted." Gee, u must really understand intel. So are u really seriously doubting that Intel has a pilot line running o.13 Cu process. So based on this brilliant analysis are u suggesting that Intel is building empty shell fabs. And gonna start ordering equipment when -- say mid year next year - when the ole pilot line fires up. Pete - stick to "analyzing" software - this fab analysis is pure BS. regards, Kash