STOCKS TO WATCH: AMD, Micron and SCM Microsystems

Get ready for another AMD collapse.

The company that is rumored to be a player in the microprocessor market delivered another profit warning Wednesday. It now says it will lose $200 million in the quarter.

CEO Jerry Sanders told analysts that total sales in the quarter will fall below $600 million.

Last quarter, AMD issued three profit warnings ahead of its first-quarter results before checking in with a loss of $128.4 million, or 81 cents a share, on sales of $631.6 million.

In a prepared release, AMD said it "expects that average selling prices and unit shipments will fall substantially below earlier expectations for the second quarter."

It also said it was "unlikely" to sell more than 3.7 million units, despite the increased production of its K6 microprocessors. Heavy "gray market" activity worldwide, which has only recently subsided, makes it unlikely that the company will get the sell-through needed to achieve unit sales growth.

First Call consensus was expecting a loss in the second quarter, but not one of this magnitude. Analysts had predicted a loss of 40 cents a share in the quarter.

AMD shares peaked at 33 in December before falling to a 52-week high of 12 3/4 in August. Although AMD said it lost customers because of its manufacturing problems, the company did say it had a new high-end chip.

Micron Technology disappointed its investors, too. The memory chip manufacturer lost $28 million, or 10 cents a share, on sales of $864 million in its third quarter.

First Call consensus expected it to break even in the quarter.

Third quarter revenue of $864 million represented a gain of almost 41 percent year-over-year, but a 15.8 percent decline from the second quarter. The company blamed price declines for lower gross margins.

Prices for 64-bit synchronous DRAM chips dropped 27 percent from the second quarter. Over the same period, megabit production increased 17 percent, while the number of megabits sold rose just 8 percent.

Micron shares fell 1 5/16 to 43 15/16 ahead of the earnings report.

SCM Microsystems said it will report a loss of between 20 cents to 23 cents a share in its second quarter after taking a $7 million charge related to taking a majority stake in Dazzle Multimedia Inc.

Company officials now expect a loss of $3 million in the quarter, compared to a loss of $2.1 million, or 15 cents a share, in the year-ago quarter.

First Call consensus expected it to earn 24 cents a share in the quarter.

SCM also said reduced gross margins due to the rapid introduction and production ramp of several new products and expenses related to operations from prior acquisitions would dampen its second quarter results.

The stock closed up 5/8 to 54 3/8 ahead of the profit warning.