AMD bullish on revenue
U.S. No. 2 chipmaker optimistic about 2001 despite overall slump in sector
June 6, 2001: 7:58 a.m. ET
TOKYO (Reuters) - Advanced Micro Devices Inc. expects to boost revenue this year despite a slump in the overall semiconductor industry as the No. 2 U.S. chipmaker expands its market share, Chief Operating Officer Hector Ruiz said Wednesday.
"At this point in time our expectation for 2001 is that we will have modest growth for the year," he told a news conference, noting the growth would come despite expectations of an industry-wide decline of up to 15 percent.
He also said signs were emerging that the sluggish global personal computer market would return to normal in the fourth quarter of this year.
"We're beginning to see signs of activity which make us optimistic that by the fourth quarter there will be a resumption of normal business," said Ruiz, who is set to take the helm at the chipmaker next April.
Wall Street analysts estimate Advanced Micro Devices' annual sales at about $4.8 billion, up from about $4.6 billion last year, according to First Call, which tracks analysts' forecasts.
"No one can predict exactly which quarter will be the bottom, but we believe there are signs that the PC market has begun to stabilize," he said."We are seeing a little more activity ourselves and evidence from what customers tell us."
He was less optimistic, however, about chip demand from the communications sector.
With regard to business at his own company, Ruiz noted that AMD (AMD: Research, Estimates) boosted its share of the global microprocessor market, where it battles head-to-head with Intel Corp., by three percentage points to 17 percent last year, with a jump to 21 percent in the first quarter.
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Recent products for the mobile computer and workstation/server markets would also help AMD achieve its objective of 30 percent market share within the next year or two, he said.
On Tuesday, the company unveiled two fast processors in its Athlon series that it hopes will give it a foothold in the lucrative market for servers, computers that host networks for corporate or Internet applications.
Despite the communications sector's woes, Ruiz was relatively upbeat about the prospects for AMD's"flash memory" chips, used in cell phones and other products.
Shares of AMD gained $1.29 to $28.90 Tuesday.
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