AMD has best quarter ever

By : |April 13, 2000 0

Advanced Micro Devices (AMD) reported the best quarter in the company’s
troubled financial history with profits of $189.3 million and sales of $1.09
billion. That compares to a loss of $128.4 million on sales of $631.5 million
in the same quarter a year ago.

"Q1 was a great start to the new millennium at AMD. The Athlon is clearly
a home run," said company chairman Jerry Sanders III referring to the
firm’s K7 line of high-end microprocessors that offer speeds of 700
megahertz to 1 gigahertz. Sanders contradicted reports issued this week on
Wall Street that has the PC market growing slower than was expected in the
first quarter. Sanders said demand for microprocessors does not support the
pessimism that sent Microsoft and other high-tech stock tumbling this week.
"We think the PC market is strong and it’s getting stronger," Sanders
said.

Sanders said each of AMD’s product groups reported significant growth in the
first quarter. Unit sales of Athlon processors increased by 50 percent to 1.2
million units, boosting overall PC processor revenues by 14 percent from the
fourth quarter of 1999 and by more than 65 percent over the first quarter of
1999. "We believe that with product upgrade cycles, Windows 2000 and the
forthcoming Windows Millennium, the PC market will generally grow in the high
teens this year. Our previous goal of selling more than 25 million processors
this year could prove conservative." Total unit sales, including the AMD
Athlon and AMD-K6 processors, reached a record at nearly 6.5 million units,
and revenues from AMD Athlon processors exceeded revenues from AMD-K6 family
processors. But AMD is still seeing strong sales of its K6 line. "We are
selling all we can make of the K6," Sanders said, adding that sales in the
current second quarter will rise modestly (5-10 percent) from the $1.1 billion
in the most recent quarter. Unit shipments of Athlon processors will rise to
1.8 million units.

Advanced Micro Devices (AMD) reported the best quarter in the company’s
troubled financial history with profits of $189.3 million and sales of $1.09
billion. That compares to a loss of $128.4 million on sales of $631.5 million
in the same quarter a year ago.

"Q1 was a great start to the new millennium at AMD. The Athlon is clearly
a home run," said company chairman Jerry Sanders III referring to the
firm’s K7 line of high-end microprocessors that offer speeds of 700
megahertz to 1 gigahertz. Sanders contradicted reports issued this week on
Wall Street that has the PC market growing slower than was expected in the
first quarter. Sanders said demand for microprocessors does not support the
pessimism that sent Microsoft and other high-tech stock tumbling this week.
"We think the PC market is strong and it’s getting stronger," Sanders
said.

Sanders said each of AMD’s product groups reported significant growth in the
first quarter. Unit sales of Athlon processors increased by 50 percent to 1.2
million units, boosting overall PC processor revenues by 14 percent from the
fourth quarter of 1999 and by more than 65 percent over the first quarter of
1999. "We believe that with product upgrade cycles, Windows 2000 and the
forthcoming Windows Millennium, the PC market will generally grow in the high
teens this year. Our previous goal of selling more than 25 million processors
this year could prove conservative." Total unit sales, including the AMD
Athlon and AMD-K6 processors, reached a record at nearly 6.5 million units,
and revenues from AMD Athlon processors exceeded revenues from AMD-K6 family
processors. But AMD is still seeing strong sales of its K6 line. "We are
selling all we can make of the K6," Sanders said, adding that sales in the
current second quarter will rise modestly (5-10 percent) from the $1.1 billion
in the most recent quarter. Unit shipments of Athlon processors will rise to
1.8 million units.

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