Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: AK2004 who wrote (30703)	4/1/1998 12:37:00 AM
From: StockMan	Read Replies (1) \| Respond to of 1572313

DCR Places AMD on Rating Watch--Down CHICAGO, March 17 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) has placed the senior debt of Advanced Micro Devices, Inc., (AMD) on Rating Watch -- Down in response to forward-looking statements published in the company's 1997 10K. DCR rates AMD's senior secured notes 'BBB-' (Triple-B- Minus) and senior unsecured debt 'BB' (Double-B). In its 10K, AMD said it ''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.'' In the fourth quarter, AMD reported a loss of $12 million on revenues of $613 million. For the year as a whole, AMD reported a loss of $21 million on revenues of $2.4 billion. Further, the company said it ''plans to continue to make significant capital investments, at a rate higher than in previous years.'' In 1997 capital spending was $685 million, in 1996 $485 million and in 1995 $625 million. The company's credit agreement was amended in February essentially to provide slack for the expected early-1998 shortfall. The 10K further said that ''the company will be required to raise funds through external financing in the second quarter of 1998 in order to meet certain of these amended covenants.'' The company filed a $1 billion universal shelf registration on March 3, 1998. DCR expects that such events would have a negative effect on AMD's credit quality. Whereas competitor Intel has also signaled a weak first quarter of 1998, the causes appear to be different. Intel cites weak demand. Conversely, demand for AMD's K6 microprocessor has benefited from the market's interest in ''sub-$1,000 PCs.'' AMD says it can ship all the microprocessors it can make; it just cannot make enough. It continues to be plagued by manufacturing yield problems. Furthermore, AMD is undertaking a difficult conversion from .35 micron process technology to .25 micron in order to improve the speed, power consumption and cost of K6. Such a conversion could disturb production even without AMD's lingering yield problems. The increase in planned capital spending is largely for the .25 micron conversion and for continuing the development of the new wafer fabrication facility in Dresden, Germany. Dresden is intended to provide additional manufacturing capacity for subsequent AMD microprocessors and to support a higher level of participation in the microprocessor market. The progress in AMD's manufacturing yields and .25 micron process conversion as they affect cash flow and borrowing requirements will be the major factor in any subsequent DCR rating action. Other factors will be competitive pricing in the microprocessor market and the continued favorable acceptance of AMD's product line.

To: AK2004 who wrote (30703)	4/1/1998 2:52:00 AM
From: Investor A	Read Replies (1) \| Respond to of 1572313

Listen to what K6-266 buyer has said on Asus Newsgroup: Quote ================= it lives wrote: > > On 21 Mar 1998 20:09:28 GMT, abreimeris@aol.com (ABreimeris) wrote: > would you pay $325 for a K6 or $349 (and dropping) for a PII266 ? > an asus P2L97 is only about $150: mega memory and real AGP. > (not to mention the intel pipelined FPU buffers :) I'd pay the $325 for the K6... Here's why... The K6-266 will drop into my current socket 7 mother board which the p2 won't so to buy the p2 let's add $150 for a descent board.. The p2 is now up to $349+$150=$499.. I havn't seen a p2 board that isn't an ATX style board which means I'd have to buy a new case so lets add another $50...So now your p2 is costing $549... And to use the AGP, which I couldn't care less about, I'd have to shell out another $150 for a new video card.. So now we're at $699.... Let's see, $699 or $325? Choice is clear here.. I can get the K6 266 and overclock it to 291/83 and get roughly the same FPU performance as a p2-266 and stomp all over the p2-266 in integer performance..And all for $374 less... C ya, Bob -- randomc.com To reply remove the SPAM and SUX from my E-mail address. ============================================================