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To: PCSS who wrote (90770)	4/18/2001 6:27:16 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

AMD Easily Beats First-Quarter Estimate By Caroline Humer Senior Writer 4/18/01 5:42 PM ET Semiconductor maker Advanced Micro Devices (AMD:NYSE - news) on Wednesday said it earned 37 cents a share in the first quarter, beating analyst expectations by four cents a share as sales increased slightly. Analysts had expected AMD to earn 33 cents a share, according to Thomson Financial/First Call, down from 58 cents a share in the year-earlier quarter and 53 cents a share in the fourth quarter. The decline in earnings came despite a slight increase in revenue, which totaled $1.19 billion, up from $1.09 billion in the first quarter a year earlier and up from $1.18 billion in the fourth quarter. Analysts were expecting revenue of $1.13 billion. AMD is one of the few semiconductor companies that didn't issue an earnings warning for the first quarter and one of the only ones to report a revenue increase. AMD remains quite positive for the year, confirming analysts' estimates for earnings per share of $1.50 in 2001. The company also expects modest sales growth this year. In the second quarter, AMD sees revenue declining about 10% due to a decline in flash memory products and in its non-PC related chips and foundry services. It expects to maintain its level of PC-related sales and sees PCs growing in the high single-digit percentage range in 2001. AMD also appears to be gaining market share from Intel (AMD:NYSE - news), the larger of the two U.S. companies that make microprocessors for use in personal computers. Intel on Tuesday reported that its revenue fell to $6.7 billion, down from $8.7 billion in the fourth quarter and $7.99 billion in the first quarter of 2000. During a conference call, Intel's Paul Ottelini, general manager of the Intel architecture group which includes computing, said that Intel isn't ceding market share to its main competitor. But Intel and AMD's fight for market share seems to be turning into a costly price war. Intel recently lowered prices on its high-end chips, and more price cuts are on the way. Intel has said that lower prices on its Pentium 4 chips, which are still quite costly to produce, will cut into profit margins this year. AMD is expected to bring down its prices as well.