Advanced Micro Devices said Tuesday that second-quarter sales will be significantly lower than normal, producing a "substantial" operating loss for the quarter.
AMD, Sunnyvale, Calif., said sales for the quarter are expected to be within the $620 million to $700 million range. "At these depressed sales levels, the Company anticipates a substantial operating loss for the quarter," AMD said. AMD originally projected second quarter sales to be within the $820 million to $900 million range.
"As we have seen in previous statements from a number of other companies, there is broad weakness in the personal computer market and it is adversely affecting AMD," said Robert J. Rivet, AMD"s chief financial officer, in a statement. "The processor business, particularly in Europe and North America, is weak. Our flash memory business is improving and expected to show sequential sales growth."
AMD will continue R&D spending at record levels in its strategic thrusts and is executing well on its previously reported product and technology roadmap schedules, the company said.