AMD Reiterates Guidance
AMD Reiterates Guidance
SUNNYVALE, CA --
Speaking at a Robertson-Stephens semiconductor conference in San Francisco, an AMD executive reiterated guidance concerning the company's expectations for the second half of 2000.
Benjamin M. Anixter, vice president for External Affairs at AMD, said that despite the loss of revenues from the company's Communication Products Division, AMD projects that it will report record sales in the September quarter based on continued strong demand for its flash memory and PC processor products.
"Demand for AMD flash memory devices continues to exceed supply," said Anixter. "We are ramping the production capacity of our flash memory manufacturing joint venture, FASL (Fujitsu AMD Semiconductor Ltd.), as rapidly as possible to support our customers. Our increased output is committed through the remainder of this year. With good visibility into future demand through the end of 2001, we continue to expect strong growth in sales of flash memory products."
Anixter said that the principal drivers of strong demand for flash memory products include applications for Internet infrastructure, automotive, set-top boxes, Internet access devices, and cellular telephones.
Anixter also said the company remains on track to achieve its previously stated goal of shipping 3.6 million AMD seventh-generation processors, including the AMD Athlon™ and the AMD Duron™ processors, in the current quarter. "The PC market outlook is strong," said Anixter. "We plan to meet our goal of doubling shipments of seventh-generation PC processors to 3.6 million units in the third quarter, and again doubling shipments to 7.2 million units in the fourth quarter. We plan to commence volume shipments of 1.1-gigahertz AMD Athlon™ processors in the current quarter, with higher-speed devices to follow in the fourth quarter." Anixter said the company expects that total PC processor shipments, including AMD-K6®-2, AMD Athlon™, and AMD Duron™ processors, could approach 7 million units this quarter and 9 million units in the fourth quarter.
"We are very pleased with the excellent progress we are making as we ramp production in our newest manufacturing facility, Fab 30 in Dresden, Germany. We expect that Fab 30 will contribute significantly to sales in the second half of this year as we substantially increase the availability of 1-GHz and faster versions of the AMD Athlon™ processor," Anixter concluded.
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 uncertainties that could cause actual results to differ materially from current expectations. There can be no assurance that demand for the company's products will continue at current or greater levels, or that the company will continue to grow revenues, operating profits, or earnings. The company's capacity expansion plans are based on current forecasts of demand that are subject to change depending on evolving general industry conditions, changes in customer needs, and the product introductions and capacity expansion of competitors.
There are also risks that the company will not be able to produce the AMD Athlon™ and AMD Duron™ processors in the volume, speed mix or with the feature set necessary to meet customer requirements and the company's plans and goals; that Intel Corporation pricing, marketing programs, new product introductions or other activities targeting the company's processors business will prevent attainment of the company's current processor sales plans; that third parties may not provide timely or adequate infrastructure solutions to support the AMD Athlon™ and AMD Duron™ processors; and that the company will not be able to grow demand for its PC processors sufficiently to utilize fully its processor production capacity. 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 26, 1999.