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.

Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (38555)	4/7/1998 5:05:00 PM
From: jjs_ynot	Read Replies (1) \| Respond to of 58727

AMD Trading below 28 1/2 after hours.

To: j g cordes who wrote (38555)	4/7/1998 5:12:00 PM
From: jjs_ynot	Respond to of 58727

From AMD site SUNNYVALE, CA--April 7, 1998--AMD today reported a net loss of $55,827,000 on sales of $540,856,000 for its first quarter, ended March 29, 1998. The loss amounted to $0.39 per share. Revenues declined by 12 percent from the quarter ended December 28, 1997, and by 2 percent from the quarter ended March 30, 1997. Sales for the first quarter of 1997 were $551,999,000, which resulted in net income of $12,951,000, or $0.09 per share, diluted. In the fourth quarter of 1997, AMD reported sales of $613,171,000, which resulted in a net loss of $12,334,000, or $0.09 per share. "The first quarter of 1998 was an unusually difficult one for AMD," said W.J. Sanders III, chairman and chief executive officer. "We faced three major challenges: 1) remedying yield problems that limited production of AMD-K6r processors on our initial 0.35-micron technology; 2) achieving a successful transition to leading-edge 0.25-micron technology which is essential to producing higher-performance AMD-K6 processors; and 3) coping with the effects of a semiconductor industry slowdown. "During the quarter, market conditions in the worldwide semiconductor industry were unsettled, characterized by excess capacity in memories with attendant severe price pressure, aggressive inventory reduction programs by customers, and weak demand in certain Asian economies -- notably Korea and Japan. These conditions contributed to a 9 percent aggregate decline in revenues from our three non-microprocessor businesses the Communications Group, the Memory Group, and our programmable logic company, Vantis'. These conditions continue. "The outlook is brighter for our Computation Products Group," Sanders continued. "We have resolved the yield problems on the 0.35-micron process. More importantly, we have made excellent progress toward our top-priority goal of achieving a successful transition to 0.25-micron technology for AMD-K6 processors in Fab 25 in Austin, Texas. During the just-completed transition quarter, AMD-K6 unit production increased nominally over the 1.5 million units shipped in the immediate-prior quarter. More than 10 percent of unit shipments were 0.25-micron devices, including our first volume shipments of 300-megahertz AMD-K6 processors. "Conversion of production wafer starts to 0.25-micron technology is progressing well, and more than half of our Fab 25 wafer starts are now on 0.25-micron technology. We remain on target to convert all of our production to this technology by the end of the current quarter. Current production rates and yields have encouraged us to communicate to our present customers that we expect to produce substantially more AMD-K6 processors in a higher-performance mix this quarter. Also, we are currently engaged in expanding our customer base to absorb the significant increases in output we plan for the second half of the year," Sanders concluded.