AMD slashes sales target again
The chipmaker issues its second revenue warning in two weeks, forecasting quarterly sales of $600 million. It previously expected to bring in $620 million to $700 million.
The news comes shortly after AMD projected sales of $620 million to $700 million. And that revenue target, which came June 18, was well short of the $820 million to $900 million projection given in March.
In a terse statement, AMD gave no further details on its bottom line, but last month it projected a substantial operating loss.
According to First Call, a consensus of Wall Street analysts projects a loss of 36 cents a share.
Two weeks ago, AMD blamed its warning on a weak PC market and poor sales of consumer notebooks and desktops in the United States and Europe. The company has also been trying to use its Hammer chip to diversify into the server market, which has has been weak as well.
Although rival Intel also issued a profit warning last month, AMD typically takes a harder hit as chip prices fall, analysts say.
In a research note ahead of AMD's warning, Robertson Stephens analyst Eric Rothdeutsch said it appeared that AMD "finished the quarter with a whimper."
Rothdeutsch said Intel's quarter appears to be on par with its previous outlook. He is projecting Intel revenue to be $6.3 billion, the midpoint of the chipmaker's recent guidance.