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

To: tejek who wrote (127845)	11/9/2000 5:48:10 PM
From: milo_morai	Respond to of 1570897

<font color=red>Advanced Micro Expects Higher Sales in 1st Qtr, 2001 (Update2) 11/9/00 1:34:00 PM Source: Bloomberg News Sunnyvale, California, Nov. 9 (Bloomberg) -- Advanced Micro Devices Inc., Intel Corp.'s main rival in the personal-computer processor market, reiterated its fourth-quarter sales target and said first-quarter revenue growth will be in the ''high teens.'' Sales next year will rise faster than the projected chip industry growth rate of 22 percent, Chief Executive Jerry Sanders said at a meeting with analysts that was broadcast on the Internet. ''We see that as a floor for AMD's growth in 2001,'' he said. Advanced Micro picked up sales as Intel couldn't make enough chips to meet demand earlier this year. Sunnyvale, California- based Advanced Micro has also beaten the No. 1 chipmaker over some technical hurdles by introducing faster processors first and currently holds the crown for the speediest chips on the market. The company still expects fourth-quarter sales growth in the ''high single digits'' with 2000 revenue reaching $4.8 billion. Percentage growth in demand for personal computers next year will continue in mid-teens and follow a normal seasonal pattern, Sanders said. That translates to a rise in the processor market in the high teens, he said. Advanced Micro expects to continue to gain market share by introducing new chips for laptop computers and servers that power Web sites and corporate networks. The company's shares fell 69 cents to $21 and have added 45 percent this year. Intel stock fell $1.31 to $41.38 and is little changed in 2000. Flash Memory Much of Advanced Micro's success this year came from surging demand for flash-memory chips, which store information when devices are turned off. The company is the world's second-largest flash supplier behind Intel. As sales of cell phones, electronic organizers and other gadgets soared, flash has been in short supply. Despite reports of slowing demand for phones, Advanced Micro expects flash shortages to continue. ''We expect the imbalance (between supply and demand) to remain as acute through 2001 and 2002,'' said Walid Maghribi, vice president of Advanced Micro's memory group. Contracts with customers such as Cisco Systems Inc., Lucent Technologies Inc. and Alcatel SA mostly run through 2002, and extensions for another year are being negotiated now, he said. The average price for flash chips will continue to rise every quarter throughout next year, Maghribi said. Processor Roadmap The company's flagship Athlon processor operates at 1.2 gigahertz, making it the fastest processor on the market -- for now. Intel, based in Santa Clara, California, is set to introduce its much-touted Pentium 4 this month at speeds of 1.4GHz and has demonstrated the chip running at more than 2GHz. Advanced Micro won't be far behind. Athlons based on a new core design, dubbed ''Palomino'' during development, will reach 1.5GHz by the end of second quarter next year. Coming off its recent success in the desktop PC market, the company is taking aim at two other Intel strongholds: laptops and powerful server computers. Laptop versions of the Athlon and the slower Duron chip are expected next quarter. Other new processors begin shipping in the first quarter of 2002 and target servers, workstations and high- end desktops. cnetinvestor.com Milo You're welcome.