AMD Updates Third Quarter Outlook
-Company Will Report Lower than Expected Third Quarter Sales-
SUNNYVALE, CA --
AMD (NYSE:AMD) announced today that sales for the third quarter ending September 29, 2002 will be approximately $500 million. The Company's projection made in connection with the release of second quarter results was for third quarter sales to improve modestly compared to the $600 million in the second quarter. At these reduced sales levels, the Company anticipates a substantial operating loss for the quarter.
"While our flash memory business is improving and showed sequential sales growth for the second consecutive quarter, the weakness in the personal computer market continues to impact AMD," said Robert J. Rivet, AMD's Chief Financial Officer. "In the absence of any significant improvement in PC demand in the just completed quarter, we accelerated our efforts to reduce processor inventory in the PC supply chain. The aggressive actions we took to lower the total inventory and align the mix with current opportunities had a significant negative impact on our third quarter processor sales in units, revenues and ASP's. Going into the fourth quarter, AMD and its customers are in a much-improved position to take advantage of the anticipated seasonal improvement in demand."
In the most recent Gartner/Dataquest statistics on second quarter market share, AMD achieved 19 percent worldwide combined market share among shipments of Windows-based desktop and mobile computers, gaining one percentage point of overall share compared to the second quarter of 2001.
The Company will provide final third quarter financial results on October 16, 2002.
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 $3.9 billion in 2001. (NYSE: AMD).
AMD, the AMD Arrow logo, and combinations thereof are trademarks of Advanced Micro Devices, Inc. in the United States and other jurisdictions.