Less Than Expected Redux

Electronic News, July 9, 2001

ADVANCED MICRO DEVICES INC. (AMD) LAST WEEK SAID SALES for its second quarter, which ended July 1, were $985 million, about 17 percent less than first-quarter sales of $1.2 billion. The Sunnyvale, Calif.-based chipmaker (nyse: AMD) said sales were also down about 11 percent from the same period a year ago.

With 341 million shares outstanding, AMD is estimating second-quarter net income of 3 cents to 5 cents per diluted share. In April, AMD forecast second-quarter sales could fall by as much as 10 percent. Last week, AMD cited weaker-than-predicted demand for flash memory devices and competitive pricing in the PC processor market for sales slightly less than expected. However, AMD said it still achieved record unit sales of AMD Athlon and AMD Duron processors, and record aggregate PC processor unit sales. AMD will release its second-quarter financial results July 12.