AMD Warns of Third-Quarter Loss
The chip maker blames continued weak demand for its PC processors and price cuts it has had to make in order to unload rising inventories of unsold chips.Advanced Micro Devices Inc. warned that it will post a higher than expected loss for the third quarter, blaming continued weak demand for its PC processors and price cuts it has had to make in order to unload rising inventories of unsold chips. Sales for the quarter, which ended Sunday, totaled about $500 million, well below the $600 million the chip maker garnered the previous quarter and which it had predicted it would match this quarter.
"In the absence of any significant improvement in PC demand in the just completed quarter, we accelerated our efforts to reduce processor inventory in the PC supply chain," Chief Financial Officer Robert Rivet said in a statement issued after the stock market closed on Wednesday. "The aggressive actions we took to lower the total inventory and align the mix with current opportunities had a significant negative impact on our third-quarter processor sales in units, revenues and [average selling prices]."