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

To: Maxwell who wrote (38648)	10/7/1998 3:18:00 PM
From: Joey Smith	Read Replies (4) \| Respond to of 1576611

Maxwell, Kumar is to AMD as Kurlak is to Intel. Check out this article. Will explain why AMD is down today. K6-2 reportedly still having yield problems...I wonder if Jerry is putting one over on AMD investors??? joey Wednesday October 7, 2:57 pm Eastern Time Advanced Micro tumbles amid analysts' bearish view SAN FRANCISCO, Oct 7 (Reuters) - Shares of Advanced Micro Devices Inc. (NYSE:AMD - news) tumbled Wednesday amid bearish comments from Wall Street analysts on its future challenges, despite the chip maker's report of a surprise profit for the third quarter. Advanced Micro late Tuesday reported a narrow profit of $1 million, or one cent a share, compared with a loss of $31.7 million, or 22 cents a share, in the year-ago third quarter. Analysts had been expecting a loss of 11 cents per share, according to the First Call consensus, but there had been ''whispers'' of a break-even performance. But analysts and traders said other than a third quarter rebound in personal computer sales -- especially at the low-end of the market, where Advanced Micro is a big supplier -- the company's profits were underwhelming. ''They shipped a tremendous amount of product in the quarter,'' said one technology trader. ''Is that as good as it gets?...This was AMD's quarter to shine. Going forward, it's always the same story with AMD: they really don't make enough money.'' Advanced Micro's profit was its first in four quarters. Ashok Kumar, a Piper Jaffray analyst, also pointed out in a research note that he believes the Sunnyvale, Calif.-based company will miss its next new product shipment date due to its current low manufacturing yields. Advanced Micro chairman W.J. (Jerry) Sanders said on a conference call Tuesday that the company will ship ''hundreds of thousands'' of its next version of the K6-2 processor, running at speeds of 400 megahertz, in the fourth quarter. But Kumar said in a note to clients ''We believe that the low yields at 400 megahertz will push out the launch date of this product from the fourth quarter to the first quarter.'' Kumar said he believes that Advanced Micro is currently experiencing manufacturing yields of less than one percent on this new K6-2 chip -- meaning that less than one percent are shippable to customers. ''Yes, we will ship 400 megahertz parts in the fourth quarter,'' Sanders told analysts on the call. ''Yes.'' Analysts also said they believe that Advanced Micro will face more intense pricing competition from Intel Corp. (Nasdaq:INTC - news), which now has an improved chip for the low-cost PC market with its latest Celeron processor. Intel initially stumbled in what it calls the ''basic'' PC market with its first version of Celeron. Advanced Micro typically prices its products at a 25 percent discount to Intel's for comparable performance. Sanders told analysts that the company's goal is to maintain an average selling price of $100 per unit in the fourth quarter. Advanced Micro's shares were off $3.9375 to $15.875 in active trade. More Quotes and News: Advanced Micro Devices Inc (NYSE:AMD - news) Intel Corp (Nasdaq:INTC - news) Related News Categories: US Market News