Advanced Micro Devices (AMD) announced on Thursday that revenue and earnings for its second fiscal quarter were lower than previous estimates, blaming weak demand for flash memory chips and competitive pricing in the market for PC processors.
AMD said revenue for the second quarter, which ended July 1, was down about 17 per cent from the first fiscal quarter, at $US985 million. Compared to the same quarter a year ago, sales were down about 11 percent, AMD said.
The chip maker said net income for the period was $0.03 to $0.05 per diluted share. Analysts had been expecting AMD to report income per share of $0.27 on average, according to a consensus estimate gathered by Thomson Financial/First Call.
When AMD announced its first quarter results in April, the company said it expected sales to decline by as much as 10 per cent in the second quarter.
AMD is due to report its complete financial results on July 12.
Looking for a brighter note, AMD said that despite the weak conditions in the PC market and what it called aggressive pricing moves by Intel, AMD achieved record unit sales of both its Athlon and Duron chips during the quarter.
Ahead of the news, AMD's shares on the New York Stock Exchange ended the regular trading day down 3.76 per cent, at $28.64. In the after-hours markets AMD's stock plunged a further 16.2 per cent, to $24.00.