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

To: Jim McMannis who wrote (29591)	3/5/1998 9:43:00 PM
From: Maverick	Respond to of 1572945

AMD is required to raise $270 MM to fund Fab 30, also has to pay $31 MM/qtr for 8 qtrs on a $250 MM debt incured in 96 Advanced Micro Devices Warns Of Another Loss (03/05/98; 9:52 a.m. EST) By Mark Hachman, Semiconductor Business News Advanced Micro Devices said it expects to suffer a loss in the first quarter. AMD's warning came at the same time its rival Intel also said it expected lower-than-anticipated revenues and earnings in the first quarter because of slow sales of PCs by its microprocessor customers. For undisclosed reasons, Sunnyvale, Calif.-based AMD said its revenue and net income should fall further than they had in the fourth quarter of 1997. In January, AMD reported a fourth quarter net loss of $12.3 million on sales of $613.2 million. The company said the loss was partly the result of poor production yields on its K6 microprocessors. In its warnings about the lower-than-expected results for the current quarter, AMD did not address specifics about its K6 processor yields. In a Securities and Exchange Commission filing submitted earlier this week, AMD said, "In the fourth quarter of 1997, revenues were approximately $613 million and the net loss was approximately $12 million. The company expects revenues in the first quarter of 1998 to decline significantly, and the net loss to increase significantly as compared to the fourth quarter of 1997." Under an amended February agreement with the German government, AMD said it is now required to raise $100 million in 1998 and $170 million in 1999 to fund its new Fab 30 in Dresden, Germany. AMD has filed for a shelf-registration statement for the offering of debt or equity securities. In addition, AMD also disclosed a $250 million four-year secured loan the company entered into in 1996 will begin requiring AMD to repay the principal in October. In eight equal quarterly installments, the loan will equate to about $31 million per quarter, the company said.