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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: PCSS who wrote (92036)	7/5/2001 5:52:19 PM
From: Elwood P. Dowd	Read Replies (2) \| Respond to of 97611

14.95 isn't too bad. INTC is getting slammed. If Capellas warns next week(I doubt he'll warn tomorrow), his name will be taken off a lot of Christmas card lists. El

To: PCSS who wrote (92036)	7/5/2001 8:54:27 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

Thursday July 5 8:03 PM ET AMD Issues Warning, Cites Chip Pricing By Lisa Baertlein PALO ALTO, Calif. (Reuters) - Microchip maker Advanced Micro Devices (NYSE:AMD - news) on Thursday warned that its fiscal second-quarter earnings would be a fraction of what Wall Street had forecast, hurt by pricing pressure in the personal computer-chip and flash memory markets. Sunnyvale, California-based AMD said net income would be in the range of 3 to 5 cents per diluted share, rather than the 27 cents analysts expected. Sales for the quarter ended July 1 posted a 17-percent sequential drop, instead of the 10-percent decline the company had forecast earlier. AMD shares, which finished Thursday's regular trading session $1.12 lower at $28.64, fell to as low as $24 in after-hours trade on Island. Shares of rival chip maker Intel Corp. (NasdaqNM:INTC - news) shed more than $1 from their close of $29.84 following AMD's warning. 'A COUNTRY MILE' ``They missed profit by a country mile,'' said Banc of America Securities analyst Douglas Lee, who had expected AMD's per-share results to be about 5 cents lighter than the Street's consensus. The company -- which now expects to report sales of $985 million on July 12 -- also disappointed on the revenue side, falling short of analysts' forecast for $1.08 billion, according to Thomson Financial/First Call. AMD, which joined data storage giant EMC Corp. (NYSE:EMC - news) and systems management software maker BMC Software Inc. (NYSE:BMC - news) in Thursday's warnings parade, pinned the blame on two factors. ``First, demand for flash memory devices was and continues to be weaker than anticipated,'' AMD said in a statement. The company is a big player in the mobile telephone flash memory market. Its technology allows users to turn their handsets on and off without losing stored data such as telephone numbers. ``Second, competitive pressures in the PC processor market depressed the company's average selling prices ... (but) despite continuing weak PC market conditions and very aggressive pricing by Intel Corporation, the company achieved record unit sales of AMD Athlon processors.'' The company said it had sold a record number of processors for personal computers, including its star Athlon chip, which helped drive strong results in the previous quarter relative to its bigger rival, Intel. During the first quarter AMD's net income dropped 34 percent, a strong performance compared to an 82 percent drop at rival Intel, which analysts had expected to respond by dropping prices on its own speedy chip, the Pentium 4. ``It's more the economy than competition,'' since many vendors also seem to be pressured, said Roger Kay, a senior analyst at International Data Corp., which reports on and sells to technology companies. ``The company (AMD) may well be taking share, but at lower unit prices and ultimately profits,'' Kay said. Banc of America's Lee, however, said investors should not take AMD's earnings miss as a sign that the still-weak technology sector is cratering again. ``AMD is not anywhere near as profitable as it should be,'' he said.