AMD slashes forecast for second quarter revenue
Posted on: Wednesday, 25 June 2003, 06:00 CDT
SAN JOSE, Calif. - Blaming lower sales in Asia on the SARS outbreak, chip-maker Advanced Micro Devices Inc. on Tuesday slashed its second-quarter revenue forecast by $100 million.
Sunnyvale-based AMD now expects sales for the period to be $615 million, down from an earlier estimate of $715 million.
The maker of Athlon, Duron and Opteron microprocessors has been struggling for more than a year as a result of rollout delays and stiff competition from its much-larger rival, Intel Corp.
"The anticipated global sales improvement in the month of June did not materialize as we had anticipated," said Robert Rivet, AMD's chief financial officer. He said sales from chips used in PCs and cell phones were down significantly in Asia because of severe acute respiratory syndrome.
Analysts expect AMD to lose 28 cents per share on sales of $723 million in the second quarter. AMD will report its full second quarter results on July 16.
In the first quarter, the company lost $146 million, or 42 cents per share, compared with a loss of $9.2 million, or 3 cents a share, in the same period last year.
In April, AMD launched its Opteron processors, which can handle data in 64-bit chunks, twice the size of today's standard 32-bit processors. It plans to launch a version of the chip, dubbed Athlon 64, for desktop computers later this year.
But it won't be alone. On Monday, Apple Computer Inc. unveiled its next-generation Power Macintosh, which is based on the 64-bit PowerPC G5 processor manufactured by IBM Corp. IBM calls the chip the PowerPC 970.
So far, Intel has not jumped into the 64-bit desktop fray. Its 64- bit strategy is focused on the Itanium, which it developed over a decade with Hewlett-Packard Co. and is targeted at high-end workstations and servers.
Shares of AMD were down 33 cents, or 5 percent, to $6.26 in Tuesday afternoon trading on the New York Stock Exchange.
Local Angle
Although Advanced Micro Devices has no local operations, the Vancouver-Portland area is home to a cluster of semiconductor manufacturers and their suppliers, including WaferTech and SEH America.
AMD: www.amd.com
Related Articles
- Subaru Kicks Off its Second Annual Share the Love Event This Weekend
- Schering-Plough Declares Quarterly Dividends on Common Shares and Mandatory Convertible Preferred Stock
- Subaru Partners with Charities in its Second Annual Share the Love Event
- MedPro Scores 87 Percent Sales Revenue Increase in Second Quarter
- Schering-Plough Declares Quarterly Dividends on Common Shares and Mandatory Convertible Preferred Stock
- Schering-Plough Declares Quarterly Dividends on Common Shares and Mandatory Convertible Preferred Stock
- Cellcom Israel Announces Additional Sale of Approximately 1% of its Issued Share Capital by Controlling Shareholder
- Schering-Plough Declares Quarterly Dividends on Common Shares and 2007 Mandatory Convertible Preferred Stock
- AMD Reports First Quarter Results
- SkyWest Board Approves Quarterly 3-Cent Dividend
 |
 |
User Comments (0)
RSS Feeds