Cyrix, blaming 486 chip woes, to report loss for 4th qtr
Article Abstract:
Cyrix reports its first loss ever for 4th qtr 1995 after deciding to write off its inventory of 486 chips. Cyrix states that the loss could be greater than 40 cents per share for the period, at a time when analysts had forecast a 5 cent to 10 cent gain per share. Cyrix's loss illustrates the power that Intel wields in the microprocessor industry. Intel's steep price cuts on 486 chips and its rapid production of Pentium chips have made it difficult for other companies to sell 486 chips. Cyrix's failure to turn a profit puts it in technical default of a loan agreemment it has with IBM, which manufactures chips for the company, but Cyrix executives anticipate that IBM will grant a waiver. Cyrix is in a better position than other chip makers, since it already ships a chip that is the equivalent of a fast Pentium. In 4th qtr 1994, Cyrix made 63 cents a share, or $12.7 million, and in the first three quarters of 1995, it made $1.28 a share, or $25.5. million.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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Intel's earnings fall far short of expectations
Article Abstract:
Intel announces 4th qtr 1995 earnings that fall below analyst expectations, prompting concern over potential weakness in the technology market, but Sun Microsystems reports a strong quarter with profits significantly higher than anticipated. Intel's earnings reached $867 million, the equivalent of 98 cents a share but below the $1.11 per share that analysts had predicted. The 1995 figures are more than double the $372 million earned in 4th qtr 1994. For 4th qtr 1995, revenues totaled $4.58 billion, a 42% increase over the same quarter in 1994. Some analysts downplayed the lower earnings, saying that revised estimates had been closer to $1.00 per share. Sun Microsystems reports that its earnings for 2nd qtr FY 1996 were $126 million, a 54% increase from the $81.6 million earned in the same quarter the previous year. Revenues grew 19% from $1.75 billion in 2nd qtr FY 1995 to $1.48 billion in 2nd qtr FY 1996.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Cyrix fixes its chip; shares rise
Article Abstract:
Cyrix Corp says it has solved manufacturing problems with its 486 80MHz Intel-clone microprocessors, its fastest chip, which will allow the company to sell more in the first part of 1995. The chips had been experiencing yield problems and the company was unable to produce an acceptable number of functional chips from production runs. Cyrix believed it would have to redesign the chip, pushing production off until the latter half of 1995. However, the company was able to change the manufacturing process of the chips. Before the fix, Cyrix lost sales and alienated customers when the defect was announced. Cyrix shares rose $4.50, to $22.25, gaining ground they lost in Dec 1994.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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