AMD 1997 Annual Report Download - page 32

Vantis expects to experience difficulty in filling its needs for FAEs. No
assurance can be given that Vantis will be able to effectively deploy or
manage its new network of FAEs, and the failure to do so could delay or limit
customer acceptance of Vantis products and otherwise have a material adverse
effect on Vantis.
Recent Introduction of Vantis' FPGA Products. In January of 1998, Vantis
introduced its first field programmable gate array (FPGA) products, which it
intends to sell under the VF1 name beginning in the second half of 1998. The
market for FPGAs is highly competitive. The design, marketing and sale of FPGA
products is subject to many risks, including risks of delays, errors, and
customer resistance to change. Vantis does not anticipate significant sales of
the VF1 family of products until 1999 at the earliest, and no assurance can be
given that its VF1 FPGA products will be available as scheduled or will gain
market acceptance. Inadequate forecasts of customer demand, delays in
responding to technological advances or to limitations of the VF1 FPGA
products, and delays in commencing volume shipments of the VF1 FPGA products
each could have a material adverse effect on Vantis. Failure to compete
successfully in this highly competitive FPGA market would restrict Vantis'
ability to offer high performance products across all major segments of the
PLD market and could have a material adverse effect on Vantis.
Technological Change and Industry Standards. The market for the Company's
products is generally characterized by rapid technological developments,
evolving industry standards, changes in customer requirements, frequent new
product introductions and enhancements, short product life cycles and severe
price competition. Currently accepted industry standards may change. The
Company's success depends substantially upon its ability, on a cost-effective
and timely basis, to continue to enhance its existing products and to develop
and introduce new products that take advantage of technological advances and
adhere to evolving industry standards. An unexpected change in one or more of
the technologies related to its products, in market demand for products based
on a particular technology or of accepted industry standards could have a
material adverse effect on the Company. There can be no assurance that AMD
will be able to develop new products in a timely and satisfactory manner to
address new industry standards and technological changes, or to respond to new
product announcements by others, or that any such new products will achieve
market acceptance.
Competition. The IC industry is intensely competitive and, historically, has
experienced rapid technological advances in product and system technologies.
After a product is introduced, prices normally decrease over time as
production efficiency and competition increase, and as a successive generation
of products is developed and introduced for sale. Technological advances in
the industry result in frequent product introductions, regular price
reductions, short product life cycles and increased product capabilities that
may result in significant performance improvements. Competition in the sale of
ICs is based on performance, product quality and reliability, price, adherence
to industry standards, software and hardware compatibility, marketing and
distribution capability, brand recognition, financial strength and ability to
deliver in large volumes on a timely basis.
Fluctuations in Operating Results. The Company's operating results are
subject to substantial quarterly and annual fluctuations due to a variety of
factors, including the effects of competition with Intel in the microprocessor
industry, competitive pricing pressures, anticipated decreases in unit average
selling prices of the Company's products, production capacity levels and
fluctuations in manufacturing yields, availability and cost of products from
the Company's suppliers, the gain or loss of significant customers, new
product introductions by AMD or its competitors, changes in the mix of
products produced and sold and in the mix of sales by distribution channels,
market acceptance of new or enhanced versions of the Company's products,
seasonal customer demand, the timing of significant orders and the timing and
extent of product development costs. In addition, operating results could be
adversely affected by general economic and other conditions causing a downturn
in the market for semiconductor devices, or otherwise affecting the timing of
customer orders or causing order cancellations or rescheduling. The Company's
customers may change delivery schedules or cancel orders without significant
penalty. Many of the factors listed above are outside of the Company's
control. These factors are difficult to forecast, and these or other factors
could materially adversely affect the Company's quarterly or annual operating
results.
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Source: ADVANCED MICRO DEVIC, 10-K405, March 03, 1998