Cyrix Corp expects to write a second quarter loss with revenues significantly below the previous quarter. The semiconductor company announced yesterday that revenue levels will be less than the $75.6 million reported in the first quarter, but stronger than the second quarter last year.
Cyrix hoped to see revenue flat or slightly up from the first quarter, and it attributes its failure to, ?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 break-even for the six months, a marked improvement on the large loss posted for the six months last year.
Cyrix says that the transition of non-MMX chips will remain a top priority in the third quarter, and Swent commented: ?Our current product lineup positions us well to drive both revenue and profit performance in the second half of 1997.?
The company unveiled its fast multimedia chips yesterday, implemented by Compaq in its new $1,000 Presario 2200 PCs. The 170Mhz and 180Mhz versions of the MediaGX integrated processors incorporates multimedia functions on the chip and this provides a significant cost advantage. The processors chips are manufactured by IBM, using 0.35 microns, down from 0.45, and this further reduces costs.
A 200Mhz version is due later this year, but analysts aren?t optimistic that Cyrix can rely on long-term revenues processors, saying that Intel?s policy of price cutting several times a year to clear any supply backlogs is likely to undermine Cyrix? cost advantage.
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