Cyrix has warned that it expects to post losses and revenues significantly below the previous three months when it announces its second quarter results later this month.
The PC chip maker said last week that second quarter revenues for the three months to 30 June, which are due out on 16 July, will be less than the $75.6 million (#45.5 million) reported in the first quarter, but stronger than the second quarter last year.
Cyrix had hoped revenues would be flat or slightly up from the first quarter. It blamed the poor performance on "weak overall demand with significant pricing pressure on non-MMX chips".
Jay Swent, Cyrix's chief financial officer and acting CEO, said: "We are disappointed not to reach our goal of profitability in the second quarter but we successfully introduced and shipped more than 35,000 MMX-enhanced processors; and market acceptance of the MediaGX processor continued to meet or beat our expectations."
Admitting that the shortfall will result in a loss, Cyrix still hopes to be around the break-even mark for the first half, a marked improvement on the large loss posted for the same period last year.
Cyrix said the transition of non-MMX chips will remain a top priority in the third quarter. Swent commented: "Our current product line-up positions us well to drive both revenue and profit performance in the second half of 1997."
The company unveiled fast multimedia chips last week, implemented by Compaq in its $1,000 Presario 2200 PCs. The 170MHz and 180MHz versions of the MediaGX integrated processors incorporate multimedia functions on the chip, providing a significant cost advantage, according to Cyrix.
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