For the second time in two months, chip maker Advanced Micro Devices Inc. (AMD) has cut its sales forecast for the second quarter, which ended on June 30. The company now expects to report second-quarter sales of around US$600 million, down from its earlier estimate of between $620 million and US$700 million, it said in a statement Wednesday.
AMD did not provide details for why sales are expected to be lower than earlier projections.
This is the second time that AMD has lowered its second-quarter sales estimate. In June, the company announced that second-quarter sales would fall between $620 million and $700 million, far lower than its original estimate of $820 million to $900 million.
In a conference call on June 18, AMD executives said processor demand had been weaker than expected during the second quarter but held out hopes for stronger sales during the second half of the year. Executives also said the company expected to post an operating loss for the second quarter. AMD rival Intel Corp. has also revised downward its second-quarter sales projection. The company announced on June 6 that its second-quarter revenue would fall between $6.2 billion and $6.5 billion, down from an earlier estimate of $6.4 billion to $7.0 billion. Intel said weak demand, particularly in Europe, was the reason for the lowered estimate. AMD will release its second quarter results on July 17.