AMD Raises Fourth Quarter Sales Expectations
—Anticipates sales approaching $700 million, an increase of around 35 percent, on stronger than expected PC processor demand and continued strength in high-density Flash memory device demand—
SUNNYVALE, CA --
AMD (NYSE:AMD) today announced it is raising its financial guidance for the fourth quarter of 2002 based on stronger than expected PC processor demand and continued strength in AMD high-density Flash memory products.
AMD is currently projecting fourth quarter sales to approach $700 million, an increase of approximately 35 percent over third quarter 2002 sales of $508 million. AMD had previously stated an expected sales increase of 20 percent or more in the fourth quarter of 2002 compared to the third quarter ended September 29, 2002.
The company said its Flash memory product sales, particularly in the high-end mobile phone market, continued to be strong. AMD also forecasted better than expected sales across its PC processor line, the result of a more competitive and richer product mix and increased seasonal demand for personal computers.
AMD will report its fourth quarter 2002 results 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 continue to 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, particularly in the high-end cellular telephone market; 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 September 29, 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).
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