View Full Version : AMD Posts Second-Quarter Loss

17th July 2003, 02:04 AM
SAN FRANCISCO Chip maker Advanced Micro Devices Inc. (search), which warned last month of weak sales in Asia due to the SARS (search) virus, on Wednesday reported better sales and a narrower loss than analysts' revised estimates.

The company also forecast better sales in the current quarter, and its shares rose in after-hours trade.

The report came one day after a its archrival, Intel Corp, reported earnings that doubled from a year ago, which analysts said could be a signal AMD was losing market share.

AMD posted a second-quarter net loss of $140 million, or 40 cents a share, which was narrower than the net loss of $184.9 million, or 54 cents a share, a year earlier. That handily beat analysts' expectations the company would post a loss of 54 cents per share.

Sales rose 7 percent to $645 million, beating sales estimates of $614.2 million, according to Reuters Research, a unit of Reuters Group Plc.

The company last month said quarterly revenue would come in around $615 million, $100 million less than previously forecast.

AMD attributed the 24 percent reduction in its net loss to cost management.

AMD said sales growth this quarter will come from increased shipments of AMD's Opteron server processors and initial shipments of Athlon 64 processor for desktops and laptops expected to be released in September.

Sales of flash memory used in cell phones are also expected to grow, with a new joint venture with Fujitsu Ltd. dubbed FASL LLC boosting flash sales by about $180 million, AMD said.

AMD is the No. 2 maker of microprocessors, the brains of computers, behind much-larger rival Intel Corp..

A long-anticipated recovery in the chip industry, suffering from a sluggish overall economy and reduced corporate spending, was waylaid by SARS and the war with Iraq.

Shares of AMD rose to $7.42 in after-hours after closing up 4 cents at $7.32 on the New York Stock Exchange.

AMD stock has risen about 13 percent since the beginning of the year while the Philadelphia Semiconductor Index has risen about 38 percent.

17th July 2003, 06:55 PM
:nooo: :eek: :cry: