1995 was a year of firsts for Cyrix and the industry as a whole. Last year's introduction of the Cyrix 5x86™ and 6x86 processors was the first time that any company had introduced two generations of original processors in one year. The 6x86, formerly known by its M1 code-name, was the first sixth-generation processor to arrive in the marketplace, as defined by both its architectural features as well as its unprecedented performance on the most respected third-party benchmarks. The introduction of the 6x86 processor was also the first time that any company had closed the performance gap with Intel Corporation; previously, new architectures arrived in the market a good two years after an original product introduction by Intel.
1995 saw a significant shift in the competitive landscape as well. Intel pursued the benefits of vertical integration during the year, capturing an estimated 87 percent of the processor market by selling Pentium processors, chipsets and motherboards in an apparent attempt to dominate the value-added aspects of a computer.
As marginal processor designers fell off the map in failed attempts to bring fully compatible, high-performance x86 processors to market, Cyrix was put into a compelling competitive position late in 1995. With the fastest processor available, completely compatible with the software base and capable of running the programs you will use today and tomorrow faster than the Pentium and Pentium Pro, Cyrix is in a position of leadership as we enter 1996.
Our challenge is to translate a very successful design cycle and product introduction into revenue and profit. At the same time, we must command the right kind of business, securing a market position that recognizes our performance premium and value as an alternative.
Having substantially written off our inventory of 486 products in the fourth quarter of 1995, successfully introduced fifth- and sixth-generation architectures to the marketplace and worked with our foundry partners toward ensuring the necessary supply of silicon wafers and process technology for potential growth, we stand poised to accomplish these goals and to offer performance leadership to our customers.
As we move forward, it is our intent to proliferate the Cyrix architecture, develop the Cyrix performance brand and meet the expectations of Cyrix employees and shareholders. Because when the industry wins with a high-performance alternative in the market, Cyrix and its shareholders win as well.