AMD To Delay Desktop Hammer Shipments

Advanced Micro Devices

The Sunnyvale-based chipmaker, which originally said it would ship the chip in the fourth quarter of 2002, now will have it available in the first quarter of next year, according to the new road map. Analysts predicted the delay would cause AMD to suffer heavier-than-expected losses.

"For next year, our loss estimate increases from 18 cents to 74 cents as the push-out of Hammer creates another quarter of substantial losses for the company," said a note from Merrill Lynch to investors early on Friday.

The change in schedule does not affect AMD's scheduled release next year of the server version of its 64-bit processor, Opteron.

AMD executives were not immediately available for comment.

Some developers and solution providers have been eagerly awaiting the Hammer processor because it will be backward-compatible with AMD's 32-bit processor platform, Athlon, making it easier to port software to the new chip. However, according to a CRN poll of solution providers conducted earlier this year, only a fraction of those surveyed said they expected to sell any systems based on Hammer processors in the year ahead.

The delay also will extend the lead of AMD rival Intel's arrival into the 64-bit space. Intel began shipping initial versions of its Itanium processor last year; earlier this year it started shipping its Itanium 2 processors.