AMD lowers forecast for Q4 revenue

AMD warns that profits will be down in the fourth quarter.

Advanced Micro Devices expects revenue for its fourth quarter to be 25 percent lower than its third-quarter revenue, the company announced Thursday.

AMD reported third-quarter revenue of US $1.6 billion, not including process technology licensing revenue. In November, AMD said it expected its fourth-quarter revenue to be similar to its third-quarter revenue.

Last month, the company reported a narrower loss than expected for the third quarter, a loss of $67 million, compared to a loss of $396 million for the third quarter of 2007.

However, revenue for the chip maker is expected to be down for the fourth quarter, due to weaker-than-expected demand across "all geographies and businesses, particularly in the consumer market," AMD said in a news release.

For the fourth quarter of 2007, AMD reported revenue of $1.8 billion and also a net loss of $1.8 billion. As of the third quarter of this year, AMD has reported eight consecutive quarterly losses.

AMD has long struggled to make money in a competitive environment. In October, AMD announced a plan to spin off its chip-manufacturing business into a separate company, in an effort to return to profitability.

The move could free AMD of the costs of building and maintaining its own manufacturing plants, analysts said. AMD would continue to design and sell its chips but have them manufactured by a third party.

AMD's fourth quarter ends Dec. 27. It is scheduled to report its quarterly earnings on Jan. 22.

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Grant Gross

IDG News Service
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