AMD Updates Third Quarter Outlook
—Anticipates sequential gross margin improvement and net income growth on slightly lower sales ―
SUNNYVALE, CA --
AMD (NYSE: AMD) today announced that net income for the third quarter ended September 26, 2004 is anticipated to increase from the $32 million reported in the second quarter of 2004 despite slightly lower sales. The company’s prior guidance for the third quarter was for sales to be up moderately from second quarter sales of $1.262 billion.
“Our gross margin and net income are expected to improve sequentially from the second quarter of 2004, largely due to significantly higher sales and stronger ASPs in our processor business.” said Robert J. Rivet, AMD’s Chief Financial Officer. “Although third quarter sales are anticipated to be lower than projected due to softness in our profitable Flash memory business, sales in our microprocessor business remained strong driven by increased demand for AMD64 processors.”
AMD will report its third quarter 2004 results after market close on Thursday, October 7, 2004. AMD will hold a conference call on this day for the financial community at 2:30 PM PT to discuss third-quarter financial results. A real-time audio broadcast of the teleconference will be provided at www.amd.com
. The webcast will be available for ten days after the conference call.
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. 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 Annual Report on Form 10-K for the year ended December 28, 2003, and the Quarterly Report on Form 10-Q for the quarter ended June 27, 2004.
AMD (NYSE:AMD) designs and produces innovative microprocessors, Flash memory devices and low-power processor solutions for the computer, communications and consumer electronics industries. AMD is dedicated to delivering standards-based, customer-focused solutions for technology users, ranging from enterprises and governments to individual consumers. For more information visit www.amd.com
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