Sales fell to $457 million for the quarter ending September 29, compared with sales of $607 million in the same period a year ago. AMD last year reported third quarter profits of $42 million.
W.J. Sanders III, AMD chairman and chief executive, explained the loss by pointing to declines in sales from AMD's programmable logic devices business unit and the communications and components group.
"The Computation Product Group's revenues are currently insufficient to absorb the substantial fixed costs of maintaining our strategic commitment to the Microsoft Windows-compatible microprocessor market," Sanders said.