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To: Dan3 who wrote (145249)	10/13/2001 2:28:12 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Blow Hard Dan - Re: "Valid point, but this is a very fast moving industry, and it really looks like the P4 isn't panning out. " WRONG !!! AMD blames Intel for earnings miss By Larry Dignan Special to CNET News.com October 5, 2001, 4:50 a.m. PT news.cnet.com Advanced Micro Devices said Friday that fierce price competition from Intel took its toll on the company's third quarter, which will fall well below analysts' expectations. The game of one-upmanship isn't anything new between AMD and Intel as the two chipmakers race to make faster--and cheaper--semiconductors. But Intel seems to have inflicted some body blows on AMD this quarter. For the third quarter ending Sept. 30, AMD said it will report a pro forma loss between $90 million and $110 million, or 26 cents a share and 31 cents a share. That projected loss doesn't include restructuring and other charges, expected to be between $80 million and $110 million. AMD said last month it would lay off 15 percent of its work force. According to First Call, AMD was expected to report a loss of 12 cents a share. Analysts have been trimming their estimates on AMD in light of profit warnings from PC makers such as Compaq Computer, Gateway and the price war with Intel. Revenue for the quarter will fall 22 percent from the second quarter to about $766 million. Analysts were expecting revenue of $824.7 million, according to First Call. In August, AMD said sales would be down about 15 percent. Unlike other tech companies that have issued profit warnings, AMD didn't blame the Sept. 11 terrorist attacks or a weak economy. Instead, it blamed Intel. "Intel resorted to aggressive pricing and large, cash-backed marketing programs, which had the effect of driving down ASPs (average selling prices) on PC processors," said CEO W.J. Sanders. AMD said it held or gained market share in the quarter, but the price war hurt AMD as unit sales of processors stayed at record levels hit in the second quarter. AMD sold more than 7.7 million chips in the second quarter, but it has lost key customers, including Gateway and IBM, as PC makers look to cut costs. On other fronts, AMD said sales of flash memory, which is used in wireless devices and other gadgets, fell by about $100 million, in line with previous estimates. Analysts shouldn't be surprised by the toll Intel's price war has taken on AMD. Earlier this week, Gerard Klauer Mattison analyst John Geraghty cut his sales target to $788 million and predicted that average selling prices would fall to about $66. Robertson Stephens analyst Eric Rothdeutsch also said Intel's aggressive pricing was hurting AMD. "Solid unit gains appeared to come at a price, with steeper-than-expected price declines driven by weak PC demand and aggressive pricing from Intel," he said. Rothdeutsch said the launch of AMD's new Athlon XP processor on Oct. 9 may mitigate some of the pricing pressure.

To: Dan3 who wrote (145249)	10/13/2001 2:31:31 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Blow Boy - But AMD's strategy could backfire, according to one analyst. "I think Intel will stomp [AMD]," said analyst Dan Niles of Lehman Bros., adding that Intel has taken the lead in processor performance--and more. "Basically, the Athlon [from AMD] has run out of gas, while the Pentium 4 still has a lot of headroom," Niles said. At present, Intel's fastest Pentium 4 processor runs at 2-GHz. In comparison, AMD's fastest Athlon is a 1.5-MHz device. {=====================================} Intel to focus on low-power, ease-of-use in PCs at Microprocessor Forum By Semiconductor Business News Oct 12, 2001 (7:42 PM) URL: siliconstrategies.com SANTA CLARA, Calif. -- Providing a sneak preview of its announcements at next week's Microprocessor Forum in San Jose, Intel Corp. hopes to reiterate and drive home its new philosophy at the event: megahertz no longer matters in PC computing. Intel claims the company will not emphasize microprocessor performance at the conference, but rather it will focus on two new and key themes: low-power and ease-of-use in computing. "Previously, we have focused on speed first and everything else second," according to a spokesman from Intel of Santa Clara. "We need to transition away from that," the spokesman said. Intel will also discuss several technologies at the Microprocessor Forum: Intel is expected to give more details about its code-named Banias processor, a low-power device for the notebook PC market. Targeted for the 2003 time frame or sooner, the Banias is based on a Pentium 4 core, NetBurst architecture, and its so-called "micro-ops fusion" power-management technology. The company will talk about its mobile Pentium 4 processors. It is currently sampling a 2-GHz mobile Pentium 4 chip. It will present details about a next-generation, four- and eight-way Xeon chip, based on its recently-introduced "Hyper-Threading" architecture for servers. The technology enables a process to handle multiple tasks as if it was a dual-processor device. And Intel will also give more details on its network processor for 2.5- and 10-gigabit-per-second applications. The chip is based on its new, low-power StrongARM RSIC chip architecture, dubbed XScale. The company attempted to drive the same points home at the recent Intel Developer Forum (IDF) in San Jose, but the message got lost in the shuffle, especially the "megahertz-no-longer-matters" theme. It didn't help matters when the chip giant flexed its muscles and demonstrated a 3.5-GHz Pentium 4 processor and a 2-GHz mobile version at IDF. In the MPU marketing battle, however, AMD may have stole Intel's thunder. With the formal launch of its high-end Athlon XP microprocessor series, AMD this week announced an effort to literally change the way PC processors are gauged. Instead of measuring PC central processing units by the megahertz of clock speeds--as has been the industry's practice for nearly two decades--AMD today said it was launching an initiative to develop a new reliable metric to judge CPU performance in standard personal computer applications Oct. 9 story ). But AMD's strategy could backfire, according to one analyst. "I think Intel will stomp [AMD]," said analyst Dan Niles of Lehman Bros., adding that Intel has taken the lead in processor performance--and more. "Basically, the Athlon [from AMD] has run out of gas, while the Pentium 4 still has a lot of headroom," Niles said. At present, Intel's fastest Pentium 4 processor runs at 2-GHz. In comparison, AMD's fastest Athlon is a 1.5-MHz device. More importantly, Intel's Pentium 4 chip is gaining momentum in the market, thanks in part to the company's major price cuts, he said. After a slow start with the Pentium 4, Intel could make its internal projections of selling 20 million units in 2001, he added. Not surprisingly, Intel has no plans to re-mark its chips in response to AMD's new and risky marketing strategy, the Intel spokesman said. Copyright 2001 © CMP Media Inc.