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.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

PC World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?