Shares in Advanced Micro Devices Inc dipped $2.50 to $33.75 after the company came out with disappointing second quarter figures – damaged by the failure to get the K5 microprocessor out the door and the company’s reliance on the declining Am486 market. The company did well with its 100MHz Am486, getting 1.1m of the things away, but only by cutting prices heavily and with them, profits; the company does also have a 120MHz Am486, faster than Intel Corp wanted to go. Microprocessors make up about 37% of the Sunnyvale, California-based Advanced Micro’s business, and the weakness here offset record sales for some of the company’s other products, including Flash memories, Ethernet products, and CMOS programmable logic devices, which rose 28%. The company plans to ship even more Am486s this quarter, but it really needs the K5, but it won’t be in volume until the first quarter 1996.
