Advanced Micro Has 1st-Qtr Loss; Sales Meet Forecasts (Update3)
By Cesca Antonelli
quote.bloomberg.com
Sunnyvale, California, April 17 (Bloomberg) -- Advanced Micro Devices Inc., Intel Corp.'s biggest rival in personal-computer processors, reported a first-quarter loss and said sales in the current period will be less than analysts expected.
The loss was $9.16 million, or 3 cents a share, compared with a profit of $124.8 million, or 37 cents, a year earlier. Sales fell 24 percent to $902.1 million from $1.19 billion.
Advanced Micro has reported losses for three straight quarters, as the chipmaker copes with slack demand and price cuts at Intel. The company's average prices eroded slightly during the quarter, and analysts said it's tough to say when sales will pick up. Chief Executive Jerry Sanders today forecast revenue of $820 million to $900 million in the period ending in June.
``The company is being guarded about guidance,'' said Dan Scovel, a Needham & Co. analyst who rates the shares a ``buy.'' ``Being the weakest quarter of the year for PC markets, it makes it a tough call.''
If Advanced Micro makes the high end of its targeted revenue range this quarter, it will be profitable, Sanders said. Analysts predicted a 2-cent loss on sales of $909 million, the average estimates in a Thomson Financial/First Call survey.
Advanced Micro shares fell as low as $13.86 after the report, following a 47-cent rise to $14.82 in regular U.S. trading. The stock has dropped 36 percent in the past year. |
