AMD predicts flat to nominally higher 4Q sales

Sunnyvale, California–AMD has announced that it expects to report fourth quarter (4Q) sales flat to nominally higher than for the immediate-prior quarter, ended October 1, 2000, when it reported record sales of $1,206,549,000. The company now expects that 4Q net income will be in the range of $0.50 to $0.60 per share, depending on the relative strength of PC processor sales in the closing weeks of the quarter.

AMD cites weak demand for consumer PCs in the U.S. retail market and projected that, as a result, its unit shipments of AMD PC processors will be only nominally higher than the record 6.8 million units shipped in the immediate-prior quarter. AMD had previously stated that it expected total 4Q sales to grow sequentially in the high-single-digit-range, with unit shipments of PC processors between 8 to 9 million units.

“While the slowdown in demand for PCs has been attributed variously to excess channel inventory, a slowing economy, or buyer apathy, we believe it is temporary,” says W.J. Sanders III, chairman and chief executive officer. “The PC in wired and wireless forms will continue to be the hub of the digital universe.”

The company says that demand for 1-GHz and faster processors remains strong and it continues to expect to sell out its production of AMD Athlon processors. Demand for AMD processors is expected to improve next quarter with the availability of chipsets featuring integrated graphics.

AMD reports that demand for its flash memory products remains strong and that it currently expects sales growth for flash memory products will somewhat exceed previous guidance for the quarter. The company further reports that it has good visibility into future demand for flash memory products, which it expects will remain strong in 2001.


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