01/08/96 IS CYRIX LOOKING AT A DEFAULT?

IS CYRIX LOOKING AT A DEFAULT?

CHIPMAKER CYRIX IS SPUTtering. On Dec. 22, the company warned that it may lose $8 million or more in the fourth quarter. A price collapse forced Cyrix to write down its inventory of chips compatible with Intel's 486. Cyrix said the loss could force a default on $88 million in loans used to purchase production equipment to build its newest chip, which is designed to rival Intel's new Pentium Pro. The company hopes to get a waiver from creditor IBM, which manufactures Cyrix' newest chip.
EDITED BY THANE PETERSON