Press Release: AMD Says
Third-Quarter Processor Average-Selling Price
Decline Was Larger Than Expected
Posted By
Kathy Smith
Date: October 05, 2001
AMD says that sales for third-quarter declined by 22 percent from second-quarter sales of $985.3 million to approximately $766 million.
SUNNYVALE, CA - October 5, 2001 -
AMD (NYSE:AMD) said today that sales for the
quarter ended September 30, 2001, at approximately $766 million, declined by 22
percent from second-quarter sales of $985.3 million. On August 29 AMD said that
it expected third-quarter revenues would decline by approximately 15 percent
sequentially. The company also said it expects to report a pro-forma net loss of
between $90 million and $110 million or $0.26 and $0.31 per share for the
quarter. The pro-forma loss does not include restructuring and other one-time
special charges previously estimated at between $80 million and $110 million.
Sales of flash memory devices declined by approximately $100 million
sequentially, in line with previously reported expectations, reflecting
continued weakness in the communication sector and excess inventories in the
hands of major customers. AMD also said unit sales of PC processors remained at
the record level of the second quarter, when AMD sold more than 7.7 million PC
processors. In the face of very aggressive competition, average-selling prices
(ASPs) for PC processors declined sharply, which resulted in substantially lower
revenues.
"Our ability to maintain PC processor unit volumes under current market
conditions is a strong testament to the architectural superiority of AMD
Athlon(tm) and Duron(tm) processors," said W.J. Sanders III, chairman and chief
executive officer. "With unit sales of our seventh-generation processors at
record levels in an extremely difficult PC market, we believe we either held or
gained market share. In an effort to make up for the performance deficiencies of
computers based on its Pentium* 4 processors, Intel resorted to aggressive
pricing and large, cash-backed marketing programs, which had the effect of
driving down ASPs on PC processors in the market segments where we compete
directly," Sanders concluded.
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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AMD, the AMD logo, AMD Athlon, AMD Duron and
combinations thereof are trademarks of Advanced Micro Devices, Inc. Other
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Pentium is a registered trademark of Intel Corporation.
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Contact
John Greenagel
AMD Public Relations
(408) 749-3310
john.greenagel@amd.com <
mailto:john.greenagel@amd.com >
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