Advanced Micro Devices (AMD) will continue to be hampered by a depressed flash memory market in its third fiscal quarter, but PC processor sales remain strong, the company said Wednesday in a financial forecast update.
AMD's sales of flash memory products will decline by close to US$100 million in the third quarter -- a 30 percent drop from this fiscal year's second-quarter levels. The company is expecting that this will contribute to a 15 percent revenue decline compared with the second quarter, said Rob Herb, AMD's executive vice president and chief sales and marketing officer, in a company statement.
AMD had previously forecast a revenue decline of between 10 percent and 15 percent. The company expects to report an operating loss for its third quarter.
On a more positive note, AMD expects that PC processor sales will end near the record levels posted by the company in the second quarter. AMD saw combined sales of its Athlon and Duron processors at 7.8 million units during the second quarter and should hit that level again in the third quarter. AMD competes fiercely with Intel Corp. in the PC processor space, and both vendors cut prices sharply on their chips this week.
Herb spoke at the Wit Soundview Group Semiconductor Conference in Santa Clara, California.