AMD Updates Second Quarter Operating Outlook
Company Anticipates Lower than Expected Second Quarter Sales
SUNNYVALE, CA --
AMD (NYSE: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 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, 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 schedules.
The Company will provide final second quarter financial results on July 17, 2002.
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 page of its web site at http://www.amd.com
. The web cast will be available for one week after the teleconference.
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 resulting in lower than currently expected sales in the second quarter of 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 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 for the year ended December 30, 2001 and the report on Form 10-Q for the quarter ended March 31, 2002.