AMD expects 3Q loss after slow ramp of K6

AMD expects 3Q loss after slow ramp of K6
Tom Foremski
Advanced Micro Devices (AMD) expects to report a small operating loss for its third quarter due to a slower ramp up of K6 microprocessor production. AMD says it sees strong demand for K6 and is moving production to its 0.25-micron process.
In the third quarter, the company expects to produce just over 1 million K6 units, less than it had originally projected and it will not provide sufficient revenues to cover the expenses associated with production costs.
“Current production of AMD K6 processors is approaching 150,000 units per week. We plan total fourth quarter production of approximately 2 million units, or double that of the current quarter,” said AMD CEO Jerry Sanders. AMD has begun sampling a 266MHz K6 and has shown faster versions to selected customers.


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