AMD 1998 Annual Report Download - page 208

cache memory than any other processor currently available for Windows computing.
With outstanding capability and features, the AMD-K6-III processor will enable
PC manufacturers to build more affordable high-performance systems. I expect
that an increasing proportion of production for the market segments served by
AMD will be devoted to the AMD-K6-III processor family throughout the remainder
of 1999.
The Convergence of Computation and Communications As the convergence of
computation and communications continues to accelerate, driven in large measure
by the burgeoning growth of the Internet, AMD will devote increasing focus on
enhancement of the personal computer as a visual computing platform and
information tool. Today, our Computation Products Group (which now includes our
Embedded Processor Division) produces two-thirds of our total revenues. With new
opportunities created by the Internet and electronic commerce, our
Communications Group is developing new products, such as our PCnet (TM) Home
controller, that will enable home PC users to link multiple PCs together over
standard telephone wiring - all sharing access to a single Internet connection.
We will also supply ADSL (Asynchronous Digital Subscriber Line) chipsets capable
of delivering high-speed access to the Internet over existing copper telephone
lines.
The AMD-K7 Processor and the Next 1,000 Days Our mission of establishing
the beachhead and putting in place significant wealth-producing assets has been
accomplished in the aforementioned 1,000-day campaign. Our mission for the next
1,000 days is to extract the value for our shareholders from the substantial
investments we have made and continue to make in our P3 strategy. The
forthcoming AMD-K7(TM) processor family will be central to our success. The AMD-
K7 processor will be the first seventh-generation Microsoft Windows compatible
processor in the marketplace.
Prototype AMD-K7 processors were demonstrated at Comdex last fall, and we
are currently sampling versions with clock speeds in excess of 500 megahertz.
Simply put, we believe that the AMD-K7 processor will be the highest-performance
processor for Windows computing on the market in 1999. We plan to aggressively
increase clock speeds over the 18-month period following introduction with a
goal of achieving a clock speed of 1 gigahertz by the end of next year!
The AMD-K7 processor family and the infrastructure to support it offer the
greatest technical, logistical and marketing challenges in AMD's 30-year
history. This is the culmination of our corporate purpose of "empowering people
everywhere to lead more productive lives" and our corporate mission "to grow
faster and achieve superior returns to the semiconductor industry" through
innovative solutions.
Microprocessors for Microsoft Windows computing represent the largest
segment of the worldwide semiconductor industry. The barriers to entry are high.
The scale of investment to compete is enormous. The rewards of success should be
commensurate.
Carpe diem!
/s/ W. J. Sanders III
W. J. Sanders III
Chairman and Chief Executive Officer
February 26, 1999
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The forward-looking statements contained in the above letter are subject to
risks and uncertainties, including those discussed in this annual report and the
company's Form 10-K for the fiscal year ended December 27, 1998, as filed with
the Securities and Exchange Commission, that could cause actual results to
differ materially from those projected.
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Source: ADVANCED MICRO DEVIC, 10-K, March 29, 1999