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Advanced Micro Devices Expects Lower Third-Quarter Revenues and Earnings.


SUNNYVALE, Calif.--(BUSINESS WIRE)--Sept. 25, 1995--Advanced Micro Devices (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. ) today announced that it expects third-quarter revenues and earnings to be lower than last quarter.

The company attributes the expected shortfall The introduction to this article provides insufficient context for those unfamiliar with the subject matter.
Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page.
 entirely to flat Am486 microprocessor unit shipments at sharply lower prices. AMD plans to release quarterly results on October 10.

"We continue to anticipate that revenue growth from our other product lines will be up 10 percent over the immediate prior quarter. Flash memory shipments are expected to be up nearly three times over the comparable quarter last year," said W.J. Sanders III, chairman and chief executive officer of AMD.

"AMD is responding aggressively to a market in which flash memory demand continues to outstrip out·strip  
tr.v. out·stripped, out·strip·ping, out·strips
1. To leave behind; outrun.

2. To exceed or surpass: "Material development outstripped human development" 
 our ability to produce. To meet customer demand, we continue to ramp flash memory production at our existing Fujitsu AMD Semiconductor Ltd. (FASL FASL Feet Above Sea Level
FASL Fujitsu Amd Semiconductor Limited
FASL Fellow, Academic Society of London
) fab in Aizu-Wakamatsu, Japan. In addition, FASL has approved construction of a second flash megafab and we will break ground on the new facility at a contiguous site in the first quarter of 1996," Sanders said.

"While we believe the personal computer market is healthy, many of our customers depleted de·plete  
tr.v. de·plet·ed, de·plet·ing, de·pletes
To decrease the fullness of; use up or empty out.



[Latin d
 Am486 component inventories during the current quarter," Sanders said. "The 486 market is shifting rapidly to higher-speed parts. Two-thirds of our Am486 shipments this quarter will be at 100MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc.  or higher. While we expect fourth-quarter Am486 unit demand to increase, it is unlikely that AMD microprocessor revenue growth will resume until the company begins shipping products with fifth-generation performance in 1996."

AMD reported that it has made substantial progress validating the compatibility of its K86 Superscalar A CPU architecture that allows more than one instruction to be executed in one clock cycle. See pipeline processing.

(architecture) superscalar - A superscalar architecture is a uniprocessor that can execute two or more scalar operations in parallel.
 architecture. "We are successfully running applications on Microsoft Windows See Windows.

(operating system) Microsoft Windows - Microsoft's proprietary window system and user interface software released in 1985 to run on top of MS-DOS. Widely criticised for being too slow (hence "Windoze", "Microsloth Windows") on the machines available then.
95 and more than 20 other operating systems, including UNIX UNIX

Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics).
 and OS/2, and we plan to widely sample devices that demonstrate our compatibility in December," Sanders said.

An early version of AMD's fifth-generation, superscalar microprocessor, code-named SS/5-75, will be available for sale in limited quantities during the first quarter of 1996. This 75MHz device will be a plug-in replacement for a 75MHz Pentium. It will be in volume production in the second quarter on AMD's 0.35-micron process technology in Fab 25, the company's new megafab in Austin, Texas.

"We expect that AMD K-5 products reflecting the inherent 30- percent performance advantage over Pentium will be available one quarter after the SS/5-75. We plan to produce a total of more than five million 5th-generation superscalar devices in the first 12 months after shipments commence, with more than three-million units available in 1996," Sanders said.

Advanced Micro Devices, Inc., is the fourth-largest U.S. merchant-supplier of integrated circuits. Focusing on the personal and networked computing and communications markets, AMD produces microprocessors and related peripherals, memories, programmable logic devices and circuits for telecommunications and networking applications. AMD has sales offices worldwide and manufacturing facilities in Sunnyvale, California; Austin, Texas; Bangkok, Thailand; Penang, Malaysia; Singapore; Aizu-Wakamatsu, Japan; and Basingstoke, England. -0-

Note to Editors: Press announcements and other information about AMD are available on the Internet via the World Wide Web. Type http://www.amd.com at the URL URL
 in full Uniform Resource Locator

Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program.
 prompt.

Am486 is a registered trademark of Advanced Micro Devices, Inc. K86 and AMD K-5 are a trademarks of Advanced Micro Devices, Inc. Microsoft and Windows are registered trademarks of Microsoft Corporation. Pentium is a registered trademark of Intel Corporation. OS/2 is a registered trademark of International Business Machines Corporation.

CONTACT: Advanced Micro Devices

Chuck Mulloy, 408/749-5481
COPYRIGHT 1995 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Sep 25, 1995
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