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News > Technology
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AMD warns on sales
Chipmaker lowers second-quarter sales forecasts, cites weak PC market.
June 18, 2002: 6:56 PM EDT

NEW YORK (CNN/Money) - Advanced Micro Devices Inc. Tuesday lowered its sales forecast and said it faces a substantial operating loss in the second quarter because of broad weakness in the personal computer market that cut into the chipmaker's business.

AMD's warning came minutes before a similar one from Apple Computer Inc. (AAPL: Research, Estimates), which said its sales and profit would miss forecasts because of weakness in Europe and Japan. Additionally, after the bell Tuesday software maker Oracle Corp. (ORCL: Research, Estimates) logged a fourth-quarter profit that beat expectations.

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AMD, the No. 2 supplier of chips for personal computers, said it expects sales of $620 million to $700 million for the quarter ending June 30, well below its April 17 projections for sales of $820 million to $900 million.

AMD's projections for lower sales in the second quarter would represent the company's fifth straight quarterly decline in sales, according to earnings tracker First Call. Analysts on average anticipate AMD will post a loss of 9 cents a share, compared with a profit of 5 cents a share in the year-ago quarter.

On April 17, Sunnyvale, Calif.-based AMD (AMD: Research, Estimates) posted a narrower-than-expected first-quarter loss in spite of a 24 percent drop in sales. The company's stock, which has tumbled 31 percent since then, ended down 50 cents at $10.30 Tuesday ahead of the warning.

The stock tumbled to $8.51 in after-hours trading, according to Instinet.

"As we have seen in previous statements from a number of other companies, there is broad weakness in the personal computer market and it is adversely affecting AMD," Robert Rivet, AMD's chief financial officer, said in a statement.

He noted the weakness in Europe and North America but said AMD's flash memory business is improving and is expected to show sequential sales growth.

AMD, which reports second-quarter results on July 17, said it is continuing record spending on research and development and it is proceeding well with its previously reported product and technology schedules.

The company has scheduled a teleconference later Tuesday to discuss its second-quarter sales outlook.  Top of page






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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.