AMD loss brightened by better K6 yields

AMD loss brightened by better K6 yields
Tom Foremski
Advanced Micro Devices (AMD) reported a larger than expected loss for its first fiscal quarter but said it made progress in chip yields and introduced a 300MHz K6 microprocessor.
The company said it lost $55.8m compared with a profit of $13m for the same period last year. Sales were $540.9m, lower than the $552m reported for the same quarter in 1997.
AMD CEO Jerry Sanders reported some good news on K6 yield problems, and that the company was making good progress in moving to a 0.25 micron production process. But sales in its non-microprocessor businesses fell by 9 per cent in the first quarter due to weak demand from Asian customers.
“Current production rates and yields have encouraged us to communicate to our present customers that we expect to produce substantially more K6 processors in a higher performance mix this quarter. Also, we are currently engaged in expanding our customer base to absorb the significant increases in output we plan for the second half of the year, Sanders said.

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