Clone chip manufacturer Cyrix turned in a loss of close to $7 million for its third quarter but insisted it was on the rebound with sales set to rise for the next three months, despite IBM Microlectronics undercutting its prices.
The figures show a rise in turnover from the second period to $33.1 million but still compare poorly to the $53.6 million turnover and profit in the same period last year.
Brendan Sherry, European general manager at Cyrix, said that the company had seen a strong surge of sales from mid-August worldwide. "Our results are better than we expected," he said. "We?ve got a hockey stick effect with our 6x86 and we?re at the sharp end of that."
One of the reasons for poor sales was its agreement with IBM Microelectronics, he confirmed. Cyrix has a force of 100 chip designers based in Boulder, Colorado, but it depends on IBM and SGS-Thomson for its fabrication facilities. Big Blue had discounted prices in the last quarter and that meant that Cyrix prices were undermined by its erstwhile partner.
Sherry said: "IBM Microelectronics gave their supply away in the third quarter. They have a very big commitment to Acer, worldwide."
Cyrix has settled its differences with Intel, however. Litigation was concluded and Cyrix collected $2 million from the court.
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