Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: kash johal who wrote (50962)	2/25/1999 1:53:00 PM
From: Elmer	Respond to of 1572190

Re: "Remember this is the first mask rev of the k-3." Well I seriously doubt that. This is probably the 10th mask revision by now. The other 9 weren't manufacturable. EP

To: kash johal who wrote (50962)	2/25/1999 7:44:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 1572190

AMD Investors - Lehman's Report on AMD is quite interesting ! "We are now estimating that AMD will lose about $0.30 per share in the first quarter, " Paul {==========================} Headline: Advanced Micro Devices: Preannounced Loss -- Maintain 3-Neutral Rating Author: James L. Barlage, CFA 1(212)526-6093 Rating: 3 Company: AMD INTC Country: EPS CUS Industry: SEMICO Ticker : AMD Rank(Old): 3-Neutral Rank(New): 3-Neutral Price : $16 3/4 52wk Range: $33-13 Price Target (Old): $20 Today's Date : 02/10/99 Price Target (New): $15 Fiscal Year : DEC ------------------------------------------------------------------------------ EPS 1998 1999 2000 QTR. Actual Old New Old New 1st: -0.39A 0.05E -0.30E - -E - -E 2nd: -0.45A 0.12E -0.20E - -E - -E 3rd: 0.01A 0.13E -0.11E - -E - -E 4th: 0.15A 0.25E 0.26E - -E - -E ------------------------------------------------------------------------------ Year: $-0.68A $0.55E $-0.35E $1.30E $0.80E Street Est.: $0.87E $ 0.40E $1.35E $1.08E ------------------------------------------------------------------------------ Price (As of 2/9): $16 3/4 Revenue (1999): 3.1 Bil. Return On Equity (99): N/A Proj. 5yr EPS Grth: 20.0 % Shares Outstanding: 149.9 Mil. Dividend Yield: N/A Mkt Capitalization: 2.51 Bil. P/E 1999; 2000 : N/A ; 20.9 X Current Book Value: $13.37 /sh Convertible: Yes Debt-to-Capital: 40.6 % Disclosure(s): None ------------------------------------------------------------------------------ * The prospects for a 1Q99 operating loss have been raised because of price competition at the low end of the microprocessor market. * Our estimates have been reduced accordingly. * We maintain our 3-Neutral rating on the common. ------------------------------------------------------------------------------ Advanced Micro Devices has indicated that because of increased price competition from Intel (INTC - 125; rated 1-Buy) in the Windows-compatible microprocessor market, it could incur an operating loss in the first quarter of 1999. We believe that the company's losses could extend beyond the first quarter and are estimating that AMD will not return to profitability until the seasonally strong fourth quarter. Our estimates are being reduced accordingly. We are now estimating that AMD will lose about $0.30 per share in the first quarter, compared to a loss of $0.39 per share (before unusual items) a year earlier and a $0.15 per share profit in the immediately prior fourth quarter of 1998. We previously had estimated that the company could report a profit of $0.05 per share in the first quarter of 1999. We are also lowering our 1999 full-year estimate from a profit of $0.55 per share to a loss of $0.35 per share, versus a loss of $0.68 per share (before unusual items) reported in 1998. Despite the fact that Advanced Micro Devices' common fell sharply on the announcement, we would not be a buyer at current levels and maintain our 3-Neutral rating. Advanced Micro Devices has achieved substantial penetration with its AMD-K6 microprocessor into the low-priced retail segment of the U.S. personal computer market at the expense of Intel, which initially addressed this sector with an inferior product (Celeron). However, Intel has recently introduced an enhanced version of Celeron that overcame the performance problems of the initial product. In addition, Intel had indicated that it intended to become aggressive in its attempt to regain some market share lost to Advanced Micro Devices. The result has been aggressive price reductions in these new Celeron products that, as recently announced, ranged between 16% and 24%.