AMD warns of revenue fall
( 2001-08-30 10:32) (7)
Computer chip maker Advanced Micro Devices Inc said on Wednesday it expects revenue in the current quarter to fall about 15 per cent from the previous period, which would be at the low end of its most recent projections.
Rob Herb, AMD's chief sales and marketing officer, said at a technology conference in Santa Clara that demand for flash memory chips -- which are used in cell phones, digital cameras and other consumer devices -- is so weak that revenue in that category is expected to fall 30 per cent this quarter.
He said that would lead to an overall revenue decline "in the 15 per cent range." AMD's most recent guidance, issued in its quarterly earnings report on July 12, estimated a revenue plunge of 10 to 15 per cent.
Analysts were expecting a 13 per cent revenue decline from last quarter, according to Thomson Financial/First Call. The consensus estimate is for AMD to post an operating loss of 8 cents per share, on US$853 million in revenue. In the comparable quarter last year, AMD's revenue was US$1.2 billion.
Herb also said sales of AMD's chips for personal computers are expected to be nearly flat from the last quarter. Sunnyvale-based AMD has gained market share in PC processors from rival Intel Corp in recent years but has been locked in an all-out price war that has severely eroded margins.
Shares of AMD were off 4 per cent, or 61 cents, at US$14.25 in afternoon trading on the New York Stock Exchange. Intel shares fell 45 cents to US$28.06 on the Nasdaq Stock Market.
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