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

To: Xpiderman who wrote (34740)	7/18/1998 4:39:00 PM
From: GoodGuy	Read Replies (1) \| Respond to of 1572859

AMD Post Losses In Q2, and see no signs of a recovery for 1999 Lifted from boards.fool.com AMD surprised the Street dramatically on the downside with a net loss of 45 cents per share, much wider than expected net loss of 20 cents per share. Sales declined 3 percent from the immediately prior quarter and 11 percent from 2Q97. It is AMD's fourth consecutive quarterly loss (-$0.22, -$.09, -$.39, and -$0.45) and most analysts expected the third quarter is no better than the second quarter. At BancAmerica Robertson Stephens analyst Dan Niles, a long time AMD fun, lowered his FY98 EPS to a loss of $0.84 cents per share, down from a loss of $0.16. At Morgan Stanley Dean Witter, analyst cut FY98 EPS from loss of $0.05 to loss of $0.65 a share and FY99 from net of $0.80 to profit of $0.50 a share with a "neutral" rating. Even AMD foresees more of the same in the current quarter (Q3), and no signs of a recovery for 1999. "All we can do is drive costs down." said Sanders. He also pointed to two-week plant closures in the current quarter and headcount and cost controls as a way to improve performance; it is counting on a richer mix of K6 sales to increase profits in subsequent quarters. Commenting on the just-ended quarter, Mr. Sanders said to analysts: "35 percent sequential growth in K6 sales was insufficient to offset weaker than anticipated demand for other products, notably flash memory....A return to profitability continues to be dependent on the degree of our success in increasing unit volume and average selling prices of K6s." AMD expects "no better than flat revenues for our non-K6 business." Asked if AMD had lost market share in flash, Mr. Sanders replied: "I don't know that for sure, but we may have." On regional performance outlooks, Mr. Sanders said Asia "doesn't hold any good news. Europe is coming back, but the U.S. is going to drive our volume." AMD had "a pretty crummy quarter" in Europe in the just-ended quarter, he said, despite this region having been an AMD stronghold in the past. The blip was partly because of previous product (processor) availability issues. While K6 supplies were short, AMD chose to support some of its domestic OEM Tier One customers, "costing us a little" in relationships, it was said. "That's behind us now. We don't have production issues, we have the volume." Significantly, Mr. Sanders added: Today, "It's not our execution, it's the marketplace."

To: Xpiderman who wrote (34740)	7/18/1998 9:07:00 PM
From: Yousef	Read Replies (1) \| Respond to of 1572859

Xy, Re: "Could AMD ship K-6 350 MHz by Q4 in any meaningful volume?" I don't think this will happen without AMD re-developing their .25um FET or "jacking up" the supply voltage ... remember, AMD has done this in the past (233mhz K6's). AMD's .25um FET/device is just a slight improvement (~15%) over their .35um process. We all know about AMD's success with that process. <ggg> I find the Motorola/AMD cross patents very interesting ... AMD does need considerable help. Make It So, Yousef