AMD Updates Second Quarter Outlook; Company Anticipates Lower Than Expected Second Quarter Sales.Business Editors/High-Tech Writers SUNNYVALE, Calif.--(BUSINESS WIRE)--June 18, 2002 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. (NYSE NYSE See: New York Stock Exchange :AMD) announced today that sales for the second quarter ending June 30, 2002 are anticipated to be within the $620 million to $700 million range. At these depressed sales levels, the Company anticipates a substantial 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. The Company's projection made in connection with the release of first quarter results was for second quarter sales to be within the $820 million to $900 million range. "As we have seen in previous statements from a number of other companies, there is broad weakness in the personal computer market and it is adversely affecting AMD," said Robert J. Rivet, AMD's Chief Financial Officer. "The processor business, particularly in Europe and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , is weak. Our flash memory business is improving and expected to show sequential sales growth." The Company continues R&D spending at record levels in its strategic thrusts and is executing well on its previously reported product and technology roadmap The context of product management The existence of product managers in the product software industry indicates that software is becoming more and more commercialized as a standard product. schedules. The Company will provide final second quarter financial results on July 17, 2002. AMD Teleconference AMD will hold a teleconference for the financial community at 3:00 PM today to update its second-quarter sales outlook. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations Investor relations The process by which the corporation communicates with its investors. page of its web site at http://www.amd.com or http://www.StreetEvents.com. The web cast will be available for one week after the teleconference. Cautionary Statement This release contains forward-looking statements, which are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. Risks include the possibility that global business and economic conditions will worsen resulting in lower than currently expected sales in the second quarter of 2002; that 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 pricing, marketing programs, product bundling, new product introductions or other activities targeting the company's processor business will prevent attainment of the company's current PC processor sales plans; that demand for personal computers and, in turn, demand for the company's PC processors will be lower than currently expected; that the company will not continue to be successful in ramping production of the company's AMD Athlon XP processors on 130-nanometer technology in Fab 30 in Dresden, Germany, on the current schedule; that demand for the company's flash memory products will be lower than currently expected; that the company will not achieve substantial sequential growth in sales of flash memory devices in the current quarter; that the company will not be able to maintain market share in the PC processor market and gain flash memory market share in the cellular telephone sector; and that the company may not achieve its current product introduction schedules. We urge investors to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 30, 2001 and the report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2002. About AMD AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor's 500 company, produces microprocessors, Flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $3.9 billion in 2001. (NYSE:AMD). Note to Editors: AMD, the AMD Arrow logo, and combinations thereof are trademarks of Advanced Micro Devices, Inc. in the United States and other jurisdictions. |
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