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

To: StockMan who wrote (29131)	2/27/1998 3:29:00 PM
From: Maverick	Read Replies (1) \| Respond to of 1574096

ADVANCED MICRO DEVICES INC. (AMD) 23 3/4 -1 3/8. Thank goodness that this chip maker signed a two-year production deal with IBM. Imaging what would have happened to the stock had yesterday's talk that the two companies were engaged in early discussions to allow IBM to help AMD produce its popular K6 chips not materialized? While the deal signed by AMD is positive towards alleviating production constraints, investors have noted that the agreement does not solve AMD's immediate production problems. According to AMD, the foundry agreement signed will "somewhat augment" capacity, meaning that the production constrains AMD has encountered in the past two quarters are likely to remain in place for at least the next two periods. This means that the earning losses the company has experienced due to its inability to reach economies of scale are likely to continue over the short-term as the pact is not expected to start increasing the chip supply until the 3Q of 1998. For the upcoming quarter, AMD is projected to record a loss of $0.16 a share, versus year-ago profit of $0.09 a share. In the preceding period, AMD lost $0.09 a share on revenues of $613.2 million. By Briefing.com