AMD reports gloomier outlook
Advanced Micro Devices revises its previous warning of a third-quarter loss to a more dour update.
The microprocessor chip company said its operating loss will go from "small" to "substantially large."
AMD cited lower-than-expected profits on its K6 chips as the cause for lower revenues and a larger loss than anticipated. The company did not offer any figures on the degree of the loss, nor did it offer details on its need to recast its forecast from one issued earlier this month.
In a statement issued earlier this month, the semiconductor manufacturer said it will report a "small operating loss" for the third quarter because production estimates for its K6 microprocessors are falling below expectations.
The previous warning caused the company's stock to drop about 9 percent.
AMD said today it produced and shipped 1 million K6 MMX-enhanced processors during the third quarter. That is close to three times the number of K6 chips manufactured during the previous quarter, but on the low end of the company's projections. AMD said it plans to produce 2 million K6s during the fourth quarter.
For the same quarter last year, AMD reported revenue of $456.9 million and a net loss of $38.4 million, or a loss of 28 cents a share.
The company will report third-quarter results after the market closes on October 7.