trading halted at 4:30
AMD Lowers 3Q Bar,
Trips Over It
(10/07/97; 5:45 p.m. EDT)
By Kora McNaughton, TechInvestor
SUNNYVALE, Calif. - Even after two profit warnings,
Advanced Micro Devices still missed Wall Street
estimates with its third quarter losses, the company said
after market close Tuesday.
The chip maker, which blamed the results on low
production yields for its K6 microprocessor, posted a
quarterly net loss of $32 million, or 22 cents a share,
compared to a 28 cent loss in the same period last year.
Analysts expected the company to lose about 12 cents
per share, according to First Call.
Year over year revenue growth was 31 percent,
climbing from $457 million to $597 million for the
September quarter. However, revenue was up only
nominally from the $595 million in sales in the previous
quarter.
Despite the disappointing yields, AMD said, revenue
generated by the K6 rose 50 percent over the second
quarter, to $150 million. And shipments rose to 1
million from 350,000 in the previous quarter.
However, average selling prices for the microprocessor
fell sharply as well, CEO W.J. Sanders III said in a
statement.
The company said it won't reach its previously
announced goal of shipping 2 million K6
microprocessors in the fourth quarter unless production
yields are improved.
Last month, AMD said it would post a small operating
loss for the quarter, then changed that loss to a
"substantially larger" one in an announcement made last
week.
Shares of AMD [AMD] closed up 1 15/16 to 30
before trading of the stock was halted around 4:30 p.m. |
