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

To: Road Walker who wrote (34740)	4/3/2001 7:20:11 PM
From: kash johal	Read Replies (2) \| Respond to of 275872

John, re: suing Alcatel Well it's clearly not a good thing. AMD has been relatively weak vs intel for last week or so. So maybe there's some bad news being priced in. If AMD keep underperforming then something sure smells. regards, Kash

To: Road Walker who wrote (34740)	4/3/2001 8:03:54 PM
From: survivin	Respond to of 275872

Amd sees no effect from alcatel revenue loss "The loss of revenue from the contract is not expected to affect Sunnyvale, Calif.-based AMD's quarterly results, spokesman John Greenagel said." John, I agree with your theory of using a company's present actions to predict future results, but under this philosophy couldn't this suit also act as a deterrent to other companies contemplating breach? This seems like a clear failure to perform on the part of alcatel and a likely candidate for a partial summary judgment action leaving only the question of damages for determination. The filing of suit in NY is strange, unless of course the contract's choice of law provision mandated it. AMD Sues Alcatel for Breach dailynews.yahoo.com By MATTHEW FORDAHL, AP Technology Writer SAN JOSE, Calif. (AP) - Advanced Micro Devices Inc. filed suit Tuesday against a subsidiary of Alcatel SA, asserting the division failed to buy flash memory products as promised. In a suit filed in the Supreme Court of New York, AMD said it agreed last year to supply flash memory to Alcatel Business Systems at a set price over a two-year period. At the time, demand was high and supplies short. This year, when market conditions changed, Alcatel told the chip maker that it would not be making its purchases, AMD alleged. ``After several months of negotiations, AMD reluctantly took the step of filing a lawsuit as a last recourse after Alcatel refused to honor its commitments,'' said Walid Maghribi, president of AMD's Memory Group. A U.S.-based spokesman for Alcatel referred calls to headquarters in Paris, where phones rang unanswered after business hours. Flash memory chips, which store information even when not powered on, commonly are found in cellular phones, digital cameras and other electronics. Supply agreements are an important ingredient to the success of a chip manufacturer, Maghribi said. ``Long-term supply agreements benefit both AMD and its customers because they give us some assurance that when we invest billions of dollars in new production facilities, we will have customers for our products,'' Maghribi said. Damages sought were not specified in the suit. The number of chips involved and their total value also were not released. The loss of revenue from the contract is not expected to affect Sunnyvale, Calif.-based AMD's quarterly results, spokesman John Greenagel said.