AMD Loses $185 Million in 2Q
Chipmaker continues to suffer losses amid a downturn in computer sales and aggressive price competition from much larger rival Intel.Advanced Micro Devices Inc., the worlds second largest PC chipmaker, posted a quarterly loss of $184.9 million on Wednesday, even worse than analysts already dour expectations, as the company continues to suffer losses amid a downturn in computer sales and aggressive price competition from its much larger rival Intel Corp. The chipmakers loss of 54 cents a share was more severe than the 45 cents per share Wall Street analysts were predicting, according to Thomson Financial/First Call. During the quarter, AMD, of Sunnyvale, Calif., twice warned investors that sales of its PC processors and flash memory chips were falling below projections. Revenue for the quarter fell to $600 million from $985 million a year ago. The results were a far cry from the companys optimistic projections in April, when it forecasted that sales would total between $820 million and $900 million.
"A weaker than expected PC market, particularly in North America and Europe, resulted in soft microprocessor demand in a highly competitive market," Robert J. Rivet, AMDs chief financial officer, said in a statement.