AMD Achieves Record Sales andBookings as it Returns to Profitability
October 6, 1998 04:52 PM
SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 6, 1998--Led by substantial growth in sales of AMD-K6(R)-2 processors with 3DNow!(tm) technology, AMD today reported record sales of $685,927,000 during its third quarter, ended September 27, 1998, which resulted in net income of $1,006,000, or $0.01 per share.
Sales increased by 30 percent from the immediate-prior quarter, and by 15 percent from the like period of 1997.
In the immediate-prior quarter, AMD reported a net loss of $64,560,000 on sales of $526,538,000, which resulted in a net loss of $0.45 per share. In the like period of 1997, AMD reported a net loss of $31,675,000 on sales of $596,644,000. The net loss amounted to $0.22 per share.
For the first nine months of 1998, the company reported total sales of $1,753,321,000, which resulted in a net loss of $126,281,000, or $0.88 per share. For the first nine months of 1997, AMD reported total sales of $1,743,204,000, which resulted in a net loss of $8,756,000, or $0.06 per share.
"AMD achieved record sales and returned to nominal profitability on rapid market acceptance of our AMD-K6-2 processor with 3DNow! technology," said W.J. Sanders III, chairman and chief executive officer. "This product, introduced on May 28, 1998, was the largest contributor to the substantial increase in sales of our Microsoft(R) Windows(R) compatible AMD-K6 processor family.
"Shipments of AMD-K6 family processors increased by more than one million units to 3.8 million units, and AMD-K6 family processor sales increased by 70 percent over the immediate-prior quarter. Excellent manufacturing and sales execution enabled AMD to return to profitability one quarter ahead of expectations.
"We are extremely pleased by the strong demand in the retail channel for personal computers powered by AMD-K6-2 processors," Sanders continued. "According to PC Data, systems powered by AMD-K6 family processors captured 31 percent of the total U.S. retail market for desktop systems in August, the latest period for which data are available. In the rapidly growing market for sub-$1,000 systems, PCs powered by AMD-K6 family processors captured a 54 percent market share -- the highest penetration we have achieved to date. The highest-volume desktop system sold in the United States retail channel in August was a system powered by an AMD-K6-2 processor with 3DNow! technology, even surpassing sales of Apple Computer's successful iMac system.
"During the quarter, we introduced and shipped hundreds of thousands of our 350MHz AMD-K6-2 processors," Sanders continued. "With the availability of these higher-performance devices, AMD now has very attractive products for the mainstream desktop market: systems priced at $1,500 and below, which comprise 80 percent of the U.S. retail desktop personal computer market.
"During the quarter we also introduced a 300MHz AMD-K6 processor for mobile applications. The AMD-K6/300 has a clock speed matching the highest-speed mobile processor on the market.
"In the face of continuing intense price pressures and weak overall industry demand, we were able to maintain flat sales compared to the immediate-prior quarter in the aggregate for our Communications Group, our Memory Group, and Vantis, our programmable logic subsidiary," said Sanders.
"On the strength of demand for AMD-K6 family processors, total third-quarter company bookings achieved a record level," Sanders concluded.
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