AMD Reports Bad Earnings

AMD said today that sales for the quarter ended September 30, 2001, at approximately $766 million, declined by 22 percent from second-quarter sales of $985.3 million. On August 29 AMD said that it expected third-quarter revenues would decline by approximately 15 percent sequentially. The company also said it expects to report a pro-forma net loss of between $90 million and $110 million or $0.26 and $0.31 per share for the quarter. The pro-forma loss does not include restructuring and other one-time special charges previously estimated at between $80 million and $110 million.

Sales of flash memory devices declined by approximately $100 million sequentially, in line with previously reported expectations, reflecting continued weakness in the communication sector and excess inventories in the hands of major customers. AMD also said unit sales of PC processors remained at the record level of the second quarter, when AMD sold more than 7.7 million PC processors. In the face of very aggressive competition, average-selling prices (ASPs) for PC processors declined sharply, which resulted in substantially lower revenues.

News source: Electic

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