AMD Confirms Fourth Quarter Outlook at Annual Analyst Meeting
SUNNYVALE, CA --
Speaking at AMD’s (NYSE: AMD) annual analyst meeting today, AMD President and Chief Executive Officer Hector Ruiz confirmed that he expects a sales increase of 20 percent or more in the fourth quarter of 2002, compared to the third quarter ended September 29, 2002.
Ruiz expressed confidence about the company’s fourth quarter outlook. “Based on anticipated seasonal patterns, the benefits of a better balanced inventory in the supply chain, and expected significant Flash memory sales improvement, we currently anticipate a sales increase of approximately 20 percent or more in the fourth quarter compared to the third quarter,” said Ruiz. “The launch of new processors, such as the AMD Athlon 2400+, 2600+, 2700+, and 2800+ microprocessors, affords us a richer product mix that puts us in a stronger competitive position across a broader landscape. In addition, demand for our Flash memory products, including our new MirrorBit™ offering, is accelerating. These competitive microprocessor and Flash memory products are expected to have a positive impact on fourth quarter sales.”
Ruiz also offered detail regarding AMD’s plans to reach its breakeven point, saying, “We are accelerating our strategy to reset our business modeland lower our corporate breakeven point. We have already begun implementing aggressive actions in the fourth quarter that are expected to significantly reduce our quarterly breakeven point in 2003. An associated pre-tax charge of several hundred million dollars will be taken in the fourth quarter.”
The Company’s capital expenditure total for 2002 is anticipated to be within $750 million and $800 million.
AMD will announce its fourth quarter earnings on January 16, 2003.
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 fourth 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 sales of PC processors will not follow seasonal patterns and increase from third quarter levels; that the company will not continue to be successful in ramping production of the company's AMD Athlon 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 sequential growth in sales of Flash memory devices; and that the company may not achieve its current product and technology 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 June 30, 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).