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

To: Jim McMannis who wrote (45751)	1/13/1999 5:26:00 PM
From: JAG	Respond to of 1572711

Growing customer acceptance of the AMD-K6-2 processor with 3DNow! technology enabled AMD to continue to gain share in the market for Microsoft® Windows® computing," said W.J. Sanders III, chairman and chief executive officer. "Unit shipments of AMD-K6 family processors grew by 1.7 million, or 45 percent, to 5.5 million units from the immediate-prior quarter. AMD-K6 family processor revenues grew by more than $100 million over the immediate-prior quarter to $488 million. "In 1998 AMD shipped more than 13.5 million AMD-K6 family processors, generating revenues in excess of $1.25 billion," Sanders continued. "The majority of these units - more than 8.5 million - were AMD-K6-2 processors with 3DNow! technology. We believe the substantial and growing installed base of PC systems with 3DNow! technology will provide a strong platform for software developers, which in turn should enhance opportunities for broader acceptance of AMD processors going forward. All AMD processors for the personal computer market now incorporate 3DNow! technology supported by Microsoft Windows DirectX 6.0. "A key objective in the just-completed quarter was progressing on our speed roadmap and satisfying strategic customer requirements for processors with speeds up to 400 megahertz (MHz)," Sanders continued. "We accomplished this objective. We introduced and shipped in volume 366MHz, 380MHz, and 400MHz versions of the AMD-K6-2 processor with 3DNow! technology. We shipped hundreds of thousands of 400 MHz processors, but were unable to satisfy strong overall market demand. We expect to substantially increase shipments of 400 MHz processors in the current quarter. "We continued to gain unit market share during the just-completed quarter. We estimate that AMD-K6 family processors accounted for 16 percent of all processor units for Microsoft Windows computing in the fourth quarter of 1998 - a doubling of market share from the comparable quarter of 1997. "At 38 percent share of market, AMD-K6 family processors were number one in the burgeoning segment for sub-$1,000 desktop PC systems in the bellwether North American retail channel, according to the most recent information from PC Data. Our market share in the $1,000-to-$1,500 desktop segment was 37 percent. AMD-K6 family processors captured 21 percent of the North American retail market for portable systems. With today's announcement by Toshiba and the recent announcement by Compaq Computer of portable systems featuring AMD-K6-2 processors with 3DNow! technology, the world's number one and number two producers of portable systems are now AMD customers. "Aggregate revenues from our other product groups - our Communications Group, our Memory Group, and Vantis, our programmable logic subsidiary - were essentially flat with the immediate-prior quarter. Total AMD bookings for the second consecutive quarter reached record levels, driven by continuing strong demand for AMD-K6-2 processors with 3DNow! technology," Sanders concluded.