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

To: Paul Engel who wrote (38353)	10/6/1998 4:36:00 PM
From: Jim McMannis	Read Replies (2) \| Respond to of 1574470

Paul, Don't be silly. AMD can't drag the Market down but Intel can. Anymore dumb comments? Jim

To: Paul Engel who wrote (38353)	10/6/1998 4:42:00 PM
From: Diamond Jim	Read Replies (1) \| Respond to of 1574470

Paul, let me understand this, AMD is doing good if they LOSE less than .13, but they are losing, how can that be a good thing? jim

To: Paul Engel who wrote (38353)	10/6/1998 6:02:00 PM
From: Maverick	Read Replies (1) \| Respond to of 1574470

A whopping 9,500 contracts of October 20 calls changed hands at Pacific Exchange, ahead of the Q3 release attracts calls ahead of release By Brenon Daly, CBS MarketWatch Last Update: 4:09 PM ET Oct 6, 1998 StockWatch SAN FRANCISCO (CBS.MW) -- Advanced Micro Devices topped the most-active option list at the Pacific Exchange, ahead of the chipmaker's third-quarter earnings release. A whopping 9,500 contracts of October 20 calls (AMD=JD) changed hands, putting AMD (AMD) in the unusual position of leading the volume board. The options were the seventh most actively traded issue at the Pacific Exchange in 1997. The last sale on the call contract -- which gives the holder the right to buy AMD shares at 20 anytime before Oct. 16 -- was 1 3/8, up 3/8. AMD stock closed up 1 5/16 to 19 11/16. AMD will report third-quarter results after the bell, and analysts' average estimate is a loss of 13 cents a share, compared to a loss of 22 cents a year ago. See related story. The outlook for AMD -- and other chip stocks ($SOX) -- appeared a bit brighter on Tuesday, after Motorola Inc. (MOT) reported better-than-expected semiconductor revenue. See related story. But one options trader said options players were a bit troubled by the "disparity" among earnings projection. The trader, who didn't give his name, said the range of estimates he'd seen envision AMD losing as much as 30 cents per share to making 4 cents per share in profit. The range didn't worry the trader because AMD "always disappoints anyway." The Sunnyvale, Calif.-based chipmaker has fallen short of analysts' earnings expectations for the past two consecutive quarters. "I'd be really surprised if AMD surprised on the upside," he said. Brenon Daly is an online reporter for CBS MarketWatch.

To: Paul Engel who wrote (38353)	10/6/1998 6:05:00 PM
From: Maverick	Read Replies (3) \| Respond to of 1574470

AMD may earn 15 cents in Q4 98 if they keep carving out additional market share, delivering unit volumes on the K6 and executing in their other businesses By Binti Harvey & Tiare Rath, CBS MarketWatch Last Update: 5:41 PM ET Oct 6, 1998 Tech Report SUNNYVALE, Calif. (CBS.MW) -- Advanced Micro Devices fueled hope for a rebounding semiconductor industry Tuesday after the company squeaked by with an unexpected third-quarter profit. AMD (AMD) posted a quarterly profit of $1 million, or 1 cent a share, far surpassing analysts' expectations for a loss of 13 cents a share. Sales rose $685.9 million from $526.5 million in the year-ago period. Beating its target AMD's third-quarter profit beat its own target. Previous to the report, AMD wasn't expected to record earnings until the fourth quarter. The semiconductor manufacturer hasn't posted a profit since last year's second quarter. AMD's earnings were also far better than last year's performance, when the semiconductor manufacturer lost $31.7 million, or 22 cents a share. The company's strong earnings came from strength in its K6 processors business, which analysts expected would be strong. K6 shipments were up 1 million units from its second quarter to 3.8 million units, the company reported. Most other business segments were flat or down from year-ago levels, AMD said. Dan Scovel of Fahnestock & Co. expected the company to report a pickup in demand for its K6 microprocessor core product. Scovel expected K6 unit shipments of 3 million to 3.5 million for the quarter, compared to 2.7 million in the second quarter. However, his estimate of a loss of 17 cents fell below the consensus outlook because he sees weakness in AMD's other semiconductor businesses. Flash-memory 'deterioration' "Their flash memory, network communications and [programmable logic] chips have been the ones paying the bills, and we're seeing some deterioration there," Scovel said. Brown Brothers Harriman analyst William Milton also expected AMD's other businesses to show signs of cracking under global industry pressure. "We estimate K6 revenue, which represented 42 percent of the product mix in the second quarter to increase 51 percent sequentially ... however, we expect the company's other businesses to be sequentially down." The earnings weren't a total surprise, however. AMD helped push semiconductor stocks higher Tuesday as most other tech sectors were in the red. AMD's shares closed up 1 1/2 to 19 7/8 ahead of the report. Along with AMD's anticipated report was also strong earnings from Motorola (MOT) and a growing sentiment that a recovery is underway for the battered sector. "We believe that many companies saw at least a slight improvement in bookings and shipments, with the year-to-year growth rate bottoming sometime during the August-September window," Donaldson Lufkin & Jenrette analyst Charles Boucher said in a research note. Another factor in analysts' rosier outlooks: The inventory correction that virtually halted new orders in the first half ended in the third quarter, marking renewed demand for microprocessors. However, the rebuilding of PC inventory alone may not solve the chip industry's problems, some analysts say. "We believe that the positive momentum in the PC component area, driven almost entirely by inventory snapback, can be maintained into the fourth quarter but not much further," said Goldman Sachs analyst Joe Moore. Lackluster outlooks Moore expects most other semiconductor markets to exhibit results in line with lackluster outlooks. Moore believes other semiconductor markets continue to flounder, as several analog and logic chipmakers warned of disappointments in the third quarter. He also expects slow demand for consumer and industrial electronics chips as well as telecommunications components to cause weakness into the fourth quarter. But AMD can pull higher earnings by the fourth quarter if the conditions are right, Scovel said. "We think if they keep carving out additional market share, delivering unit volumes on the K6 and executing in their other businesses they can do 15 cents in the fourth quarter," he said.