To: TimF who wrote (141777 ) 1/16/2002 7:19:35 PM From: zax Respond to of 1585089 AMD Posts Lower Than Expected Loss By THE ASSOCIATED PRESS Filed at 6:59 p.m. ET SAN JOSE, Calif. (AP) -- Driven by record sales of computer processors, chip maker Advanced Micro Devices Inc. (news/quote) on Wednesday posted a narrower-than-expected fourth quarter loss. For the three months ended Dec. 30, AMD lost $15.8 million, or 5 cents a share, compared with earnings of $178 million, or 53 cents a share, in the same period last year. Analysts were expecting AMD to lose 18 cents per share, according to a survey by Thomson Financial/First Call. ``We are executing well and expect to continue to do so,'' said Hector Ruiz, AMD's president and chief operating officer. Fourth quarter revenues were $952 million, down 19 percent from the $1.2 billion reported last year. Analysts were expecting fourth quarter 2001 revenues of $840 million. For all of 2001, AMD lost $60.6 million, compared with a profit of $983 million in 2000. Revenues were $3.9 billion, a 16 percent decline from the $4.6 billion in 2000. The year was marked by the continuing rivalry between AMD and the much larger Intel Corp. (news/quote) Though Intel's Pentium 4 chips run much faster, AMD claims its Athlon XP processors perform better. Both companies slashed prices during the year, though the reductions have slowed in recent weeks. The result drove up demand even though PC sales in general were slumping.``Anyone who believes Intel is not losing share to AMD must also believe in the tooth fairy,'' said W.J. Sanders III, AMD's chief executive. ``Competition is good, and AMD is good competition.'' AMD said it sold a record of 7.8 million processor units in the fourth quarter, and it expects to maintain that pace or exceed it in the current quarter. At the same time, the price of flash memory, which is used in digital cameras, cellular phones and other devices, remains soft. AMD expects first-quarter revenue to decline to about $900 million, which would result in a small net loss, the company said. AMD expects to return to profitability in the second quarter of 2002. Shares of AMD fell $1.24 to $17.91 in Wednesday trading on the New York Stock Exchange. They gained 87 cents in after-hours trading, after the fourth-quarter results were released