Flash not to AMD's rescue

By Alun Williams

Posted on 18 Jul 2002 at 12:21

AMD hits a $184m loss. It sees mobile phone-driven success for Flash memory products, but performs badly when it comes to the microprocessors for PCs.

In the wake of its repeated profit warnings, AMD reports a net loss of $184m for its second quarter results (covering the period April to June 2002). This compares to a loss of $9m for the first three months of the year

Harsh trading conditions can be seen by the fact that sales have fallen by 33 per cent from the last three-month period and fallen by 39 per cent from the same period a year ago.

A bright spot was Flash memory product sales - with company pinning future hopes on the newly introduced MirrorBit technology - but the microprocessor business fared badly.

'A weaker than expected PC market, particularly in North America and Europe, resulted in soft microprocessor demand in a highly competitive market,' said AMD's chief financial officer, Robert J. Rivet. 'Flash memory product sales improved in the second quarter based on the strength of the high-end mobile phone market, as consumers are buying feature-rich phones built with high-density, high performance flash memory. The successful introduction of AMD MirrorBit technology has given us competitive momentum.'

Those who wish to see the full figures can find them on AMD's Web site.