AMD Expects Small Operating Loss for Third Quarter.SUNNYVALE, Calif.--(BUSINESS WIRE)--Sept. 3, 1997--AMD announced today that it expects to report a small operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter ending Sept. 28, 1997. "In the face of strong demand for AMD-K6 MMX (MultiMedia EXtensions) A set of 57 additional instructions built into the Pentium MMX chip for improved multimedia and modem performance by performing mathematical operations on multiple sets of data at the same time (see SIMD). Enhanced Processors, we are ramping Fab 25 as rapidly as possible on current 0.35-micron technology while preparing for the migration to 0.25-micron technology, where pre-production has already commenced," said W.J. Sanders III, chairman and chief executive officer. "In the current quarter we expect to produce slightly more than 1 million AMD-K6 units -- approximately three times the 350,000 units shipped in the second quarter. This is at the low end of the production range projected at the beginning of the quarter. Unit output at this level will not provide sufficient revenues to offset the significant costs associated with ramping a product with the complexity of the AMD-K6 processor. The profits from our non-microprocessor businesses will not be sufficient to offset this deficit. "Current production of AMD-K6 processors is approaching 150,000 units per week. We plan total fourth-quarter production of approximately 2 million units, or double that of the current quarter," Sanders continued. "We have begun sampling AMD-K6 processors at speeds of 266 megahertz One million cycles per second. See MHz. MegaHertz - (MHz) Millions of cycles per second. The unit of frequency used to measure the clock rate of modern digital logic, including microprocessors. on 0.25-micron technology. We have demonstrated even higher-speed AMD-K6 processors. "Customer acceptance of the AMD-K6 MMX Enhanced Processor has been outstanding. Eight of the world's top 20 personal computer manufacturers -- including Acer, Digital, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Fujitsu/ICL, Peacock, Siemens Nixdorf See Fujitsu Siemens. , Trigem, and Vobis -- have announced products powered by AMD-K6 processors. "With substantially higher AMD-K6 processor shipments next quarter, we expect a return to profitability," Sanders concluded. Cautionary Statement This press release contains forward-looking statements about management's expectations of future performance. Investors are cautioned that all forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from current expectations. The forward-looking statements about operating profitability and the AMD-K6 MMX enhanced processor involve risks and uncertainties that the company's production ramp will fall short of expectations, that customer demand for the product will be less than available production capacity, that new wafer fabrication Wafer Fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits. Examples include production of radio frequency (RF) amplifiers, LEDs, optical computer components, and CPUs for computers. process technologies will not be developed as rapidly as customers need or demand, and that economic conditions will change and affect demand for microprocessors and other integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. . Investors are urged to consult the risks and uncertainties detailed in the company's reports filed with the Securities and Exchange Commission, including the company's 10Q for the quarter ended June 29, 1997. -0- Note To Editors: AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. is a registered trademark, and AMD-K6 is a trademark of Advanced Micro Devices, Inc. MMX is a trademark of Intel Corporation (company) Intel Corporation - A US microelectronics manufacturer. They produced the Intel 4004, Intel 8080, Intel 8086, Intel 80186, Intel 80286, Intel 80386, Intel 486 and Pentium microprocessor families as well as many other integrated circuits and personal computer networking . CONTACT: Advanced Micro Devices John Greenagel, 408/749-3310 |
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