Chip vendor Cyrix has followed its rival Intel with a profit warning for its second quarter to 30 June, blaming weak demand in the market.
The company declined to issue exact figures but said it expected turnover to be ?significantly below? the $75.6 million reported in the first quarter of this year, but much stronger than results for the second quarter of 1996.
Cyrix had hoped at least to match the first quarter?s turnover figures, but now blames weak demand in the market and pricing pressure on its non-MMX 6x86 processor for the revenue shortfall, which the company conceded will register a loss in the second quarter.
Sukh Rayat, general manager of Cyrix?s UK distributor Flashpoint, attributed the vendor?s problems to the launch by Intel of its MMX-based chips as well as a dampening of the market which also forced Intel to issue a warning last month. ?When Intel announced MMX technology, the price of Cyrix?s 6x86 P166 and P200s were affected. The margins fell because the prices did. But now that Cyrix has its own MMX technology, its margins will rise again and it?ll be in a better position,? said Rayat.
Cyrix? profit warning coincided with the release of its 166 and 180MHz Media GX processors, which feature in the latest range of Compaq Presario desktops, launched last week.
The Media GX was designed on the board, making it easier for OEMs to integrate the processor, but it will not be supplied by its distributors.
Brendan Sherry, UK general manager at Cyrix, said direct manufacturers, such as Elonex and Maple, have already signed up for the chips in 133MHz and 166MHz denominations. Cyrix is set to release a 200MHz version before the end of September this year.
The Media GX incorporates both multimedia and system functions on the central processing unit, and is manufactured by IBM Microelectronics.
Cyrix plans to include an integrated universal serial bus and MMX compatible technology in future versions.
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