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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: StockMan who wrote (25600)	11/6/1997 8:44:00 PM
From: Xpiderman	Read Replies (3) \| Respond to of 1579737

Advanced Micro Devices Inc. warned it will fail to meet its original goal of producing two million of its K6 microprocessors in the fourth quarter and that it may not turn a profit for the period. AMD said production volumes may come closer to the two-million than to one million chips this quarter. AMD also expects to ship its fastest 266-megahertz chips as early as December, while rival Intel has been ramping up its 300 MHZ Pentium II lines. Back in October, AMD stunned analysts and investors by reporting a net loss for the third quarter after warned the street twice prior the quarterly earning report. On Thursday, the company said it would post a profit in the fourth quarter only "if it were to reach its two-million-unit production goal and the rest of its business remained steady." The real possibility of producing fewer chips is very serious, analysts have said, because chip makers can't afford to miss out on the Christmas season. And by the end of this year, the industry will be moving to Intel's new generation of chips that perform at significantly higher speeds. Analysts who have been bullish on AMD now feel they need re-adjust their valuation model to reflex AMD's low production yield problem and other execution failures. AMD chief executive W.J. Sanders Thursday said "we don't have a demand problem with the K6." But analyst said without volume production, demand itself may not lead to any real profit.