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To: BWAC who wrote (11410)	9/3/2003 4:35:27 PM
From: Return to Sender	Respond to of 95617

Analyst's Couch: Q3, Q4 outlook for Intel, AMD By Mark LaPedus Silicon Strategies 09/03/2003, 3:55 PM ET siliconstrategies.com PORTLAND -- Call it the tail of two microprocessor companies. Intel Corp. is watching its fortunes rise in the third quarter of 2003 and perhaps beyond, while struggling Advanced Micro Devices Inc. is just beginning to see the light at the end of the tunnel after a period of losses, according to separate reports from Pacific Crest Securities Inc. of Portland today (Sept. 3, 2003). In fact, Pacific Crest is raising its estimates for AMD, based on stronger-than-expected processor sales in the third quarter. "Our recent channel checks indicate that AMD's microprocessor sales are tracking ahead of plan by $10 million to $15 million in Q3," said Michael McConnell, an analyst with Pacific Crest, in the report. "We now estimate MPU sales will grow 10 percent to $445 million in Q3, compared with our previous estimate of $430 million," he said in the report. AMD's flash-memory business is expected to hit $220 million in Q3, up 4 percent over the previous quarter, according to the report. But still, Pacific Crest expects another loss for AMD in Q3. The Sunnyvale, Calif. company is expected to lose $0.38 a share on sales of $880 million in the new Q3 forecast, according to the firm. In the previous forecast, AMD was expected to lose $0.45 a share on sales of $865 million in Q3, according to the Pacific Crest. AMD posted a loss of $0.40 per share on sales of $645.3 million in Q2 of 2003, and reported a loss of $0.74 on sales of $508.2 million in Q3 of 2002. Times are expected to get better for AMD. For the fourth quarter of 2003, AMD is expected to post a loss of $0.15 a share on sales of $965 million. And in 2003, it is expected to lose $1.35 per share on sales of $3.2 billion. This compares to a loss of $2 per share on sales of $2.7 billion in 2002, according to the report. No surprises at Intel Meanwhile, on Thursday (Sept. 5, 2003), Intel is expected to provide its mid-quarter update, but don't look for any Q3 surprises from the Santa Clara, Calif.-based chip giant, according to Pacific Crest. Last month, Intel already raised its forecast for the third quarter of 2003. The company expects revenue to be between $7.3-to-$7.8 billion in the third quarter, as compared to the previous range of $6.9-to-$7.5 billion. It reported a profit of $896 million, or $0.14 a share, on sales of $6.8 billion, in the second quarter of 2003. It posted a profit of $686 million, or $0.10 a share, on sales of $6.5 billion in the third quarter of last year. At the time, Intel said it is experiencing greater-than-expected unit demand for microprocessors--and even spot shortages for parts--in what is turning out to be a surprising quarter for the chip giant. Flash-memory products remain weak, however ( see Aug. 22 story ). The company's new Centrino mobile processor appears to be a big hit. "We believe that Centrino sales are tracking above Intel's expectations of 2 million units," McConnell said in the report. "x86 server sales continue to remain brisk, having exceeded UNIX sales for the first time last quarter." The seasonal upturn is also expected to propel Intel in the fourth quarter of 2003. For the fourth quarter, Intel is projected to earn $0.26 per share on sales of $8.2 billion, according to Pacific Crest Securities. And for 2003, the company is expected to earn $0.76 a share on sales of $29.32 billion, compared to a profit of $0.46 a share on sales of $26.76 billion in 2002, according to the firm. While in the meantime the SOX shows signs of further consolidation ahead. investorshub.com RtS