Company says 'flash crash' is over, but overall revenues are expected to slip again in Q2
Semiconductor Business News
(04/17/02 17:31 p.m. EST)
siliconstrategies.com
SUNNYVALE, Calif.--Advanced Micro Devices Inc. today reported a net loss of $9.2 million on sales of $902.1 million in the first quarter. Despite shipping a record 8 million PC processors in the quarter, AMD said its Q1 revenues sequentially dropped 5% from the fourth quarter, partly because of weakness in flash memories.
AMD predicted that sales would continue to slip sequentially in the current second quarter because of seasonal trends in PCs, uncertainty in flash memory markets, and potent pricing competition with processor rival, Intel Corp. AMD said sales are expected to sequentially decline slightly-to-9% from Q1 to a range of $900-to-$820 million in the current quarter.
During a conference call with analysts today, AMD chairman and CEO W.J. (Jerry) Sanders III said the company would be profitable at the upper $900 million range of the Q2 guidance, but it would again lose money at the low end of the estimate. He would not elaborate.
Sales of AMD memory products--primarily flash memory devices--continued to be weak, amounting to $160 million in the first quarter, an 18.4% decline from $196 million in the fourth quarter, said the company.
AMD said its PC processor sales totaled $684 million in the first quarter, a 3% sequential decline from $703 million in Q4 partly because of seasonal factors in the marketplace. AMD's PC processor sales were 3% higher than $661 million in Q1 of 2001. |
