Press Release: AMD Improves Outlook For Fourth Quarter
Posted By Kathy Smith
Date: December 6, 2001
AMD Athlon* XP processor drives sales growth.
SUNNYVALE, CA -
December 6, 2001 - AMD said today that it
currently expects higher sales in the current quarter ending December 30, 2001
than previously indicated. Demand for the AMD AthlonTM XP processor, which was
introduced on October 9, and is the world's highest-performance PC processor,
has been robust. As a result, PC processor revenues, in the aggregate, are
expected to exceed the previous record set in the first quarter of the year on
record units. The stronger than expected PC processor sales, even in the face of
flash memory sales now expected to be no better than flat, are expected to drive
overall fourth quarter sequential revenue growth into the 10 percent or better
range when compared to third quarter sales of $765,870,000.
AMD expects that its cost containment and reduction programs, coupled with
revenue growth, will reduce the operating loss in the current quarter from the
level of the third quarter. AMD continues to expect that it will return to
profitability in the second quarter of 2002, when the full benefits of its cost
control programs are realized.
Cautionary Statement
This release contains forward-looking statements,
which are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act 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, and that
consumer confidence will continue to decline, resulting in lower than expected
sales in the current quarter and in 2002; that Intel Corporation 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 demand for the company's flash memory products
will be lower tha! n currently expected; that the company will not continue to
be successful in ramping production of the company's highest-performance AMD
Athlon(tm) processors in Fab 30 in Dresden, Germany; and that the company will
not be able to grow revenues and reduce cost in the current quarter and in 2002
consistent with its current forecast. 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 for the year ended
December 31, 2000, and the report on Form 10-Q for the quarter ended September
30, 2001. 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 $4.6
billion in 2000. (NYSE: AMD).
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Additional press releases are available at
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AMD, the AMD logo, AMD Athlon, and combinations
thereof are trademarks of Advanced Micro Devices, Inc. Other product names used
in this publication are for identification purposes only and may be trademarks
of their respective companies.
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Contact
John Greenagel
AMD Public Relations
(408) 749-3310
E-mail: john.greenagel@amd.com
<mailto:john.greenagel@amd.com>
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