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

To: StockMan who wrote (29563)	3/5/1998 1:58:00 PM
From: Maverick	Respond to of 1572693

AMD sees Q1 net loss up sharply NEW YORK, March 4 (Reuters) - Advanced Micro Devices Inc said its net loss in the first quarter would "increase significantly" compared to its loss of $12 million in the fourth quarter of 1997. The chipmaker also said revenues in the first quarter would "decline significantly." It had fourth quarter revenues of $613 million. The warnings were contained in the company's form 10-K annual report filed with the Securities and Exchange Commission on Tuesday. Advanced Micro said last week it had reached a deal for International Business Machines Corp to make its flagship computer chip after production problems left AMD struggling to meet demand. AMD said the pact would "somewhat augment" capacity for the chip, the K6. Since the debut of the chip last April, AMD has struggled to ramp up production at its plant in Austin, Texas. The chip is low-priced competitor to Intel Corp.'s Pentium II. While the two-year agreement was greeted as good news for AMD, even the company was careful to note that volume shipments from IBM were not expected until late this year. Last month, the company canceled plans to appear at Wall Street investment conferences until it can offer a meaningful update on the progress of a major production transition at the company. AMD is in the midst of a switch to 0.25 micron production for its K6 processor, which competes with Intel's Pentium II. Production is currently ramping up and solid data on chip wafer yields is still weeks away, spokesman Scott Allen said on Feb 5. He said AMD planned to avoid Wall Street analysts' meetings until executives could answer project-related questions.