AMD warns of first-quarter loss

Under heavy pricing pressure from rival Intel, microprocessor maker Advanced Micro Devices (AMD) issued a warning today that it may incur an operating loss in its first fiscal quarter, which ends in March.

The latest consensus estimate from brokers polled by First Call was for AMD to post a profit of 13 US cents per share for the quarter. In the first fiscal quarter of 1998 the company reported a loss of 39 cents per share.

The news from AMD has sent the company's stock price into a downward spin this week. AMD's shares closed at $US18.94 today, down $US2, or almost 10 per cent, from last night's close.

"In the light of Intel's recent pull-in of its February 28 price reductions to February 8, and pending product announcements, we are re-assessing our competitive response," Jerry Sanders, AMD's CEO, said in a statement.

AMD expects to produce a greater number of faster microprocessors in the quarter, which command higher selling prices. But the pricing pressure from Intel, combined with planned research and development spending, means AMD could incur a loss for the quarter, Sanders said.

Analysts say AMD has successfully gained share in the PC microprocessor market at Intel's expense in recent quarters, particularly in the market for low-cost computers. But Intel has responded by saying it will continue to cut prices aggressively in order to regain its share, which traditionally has been above 80 per cent.

In a poor day for semiconductor stocks, Intel's shares also fell today, down $US8.56, or about 6 per cent, to close at $US130.12.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

PC World

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?