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AMD sees revenue drop
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August 29, 2001: 1:58 p.m. ET
Chipmaker expects to report 3Q sales decline in '15 percent range'
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NEW YORK (CNNfn) - Shares of Advanced Micro Devices retreated in afternoon trade Wednesday, down more than 4 percent after a top executive of the computer chipmaker said its third-quarter revenue will decline 15 percent from the second quarter's level.
Rob Herb, executive vice president and chief sales and marketing officer, told an investment conference that AMD continues to expect sales of flash memory chips will decline by approximately $100 million – or 30 percent – from the second-quarter figure.
He said aggregate revenue will decline "in the 15 percent range" from the $985.3 million AMD reported in the second quarter. The company previously had forecast a sequential revenue decline of 10 percent to 15 percent, Herb said.
Analysts polled by earnings tracker First Call most recently had expected AMD's third-quarter revenue to be roughly $853 million, suggesting a 13.8 percent decline from the second quarter.
AMD is the world's second leading supplier of PC microprocessors and flash memory chips, running a distant second to Intel. The two companies have been locked in a fierce pricing war in recent quarters which has weighed on the profitability of both companies.
When AMD reported its second-quarter results July 12, executives cited increased price pressure as the reason they would log an operating loss in the third quarter. However, they did not specify the amount they expected to lose.
The most recent consensus estimate of analysts is for a third-quarter loss of 8 cents per share, according to First Call.
Despite the revenue and profit shortfall, Herb said AMD continues to believe its PC processor unit sales in the current quarter will remain at or near the record level of the second quarter, when AMD sold 7.8 million processors. 
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