Sat, Apr 21, 2012 - Page 10 News List

AMD sales target higher than average analyst estimates

Bloomberg

Advanced Micro Devices Inc (AMD), the second-largest maker of processors for PCs, forecast sales growth that beat estimates as supply constraints eased and demand increased for PC chips.

Second-quarter sales are set to grow about 3 percent from the first three months, the company said in a statement on Thursday. That indicates revenue of about US$1.63 billion, compared with the US$1.59 billion average analyst estimate compiled by Bloomberg.

AMD’s forecast may indicate that PC makers are recovering from disk-drive shortages caused by last year’s floods in Thailand. The company may also be rebounding from scarcity of its new chips, called APUs, as its supplier, Globalfoundries Inc, ramps up production.

AMD said its second-quarter sales growth may vary plus or minus 3 percent. The company’s revenue typically declines about 4 percent in the second quarter from the first, chief financial officer Thomas Seifert said.

AMD is now receiving a “steady supply” of chips made on the latest process technology, which would allow it “to meet our customer commitments in the quarter,” chief executive officer Rory Read said in a statement.

The problem of hard-drive shortages is now behind the industry, he said.

The company reported a first-quarter net loss of US$590 million, or US$0.80 a share, compared with a profit of US$510 million, or US$0.68 a share, a year earlier. Excluding one-time items, profit was US$0.12 a share, compared with an average analyst estimate of US$0.09.

Sales fell 1.7 percent to US$1.59 billion in the period. Analysts had predicted sales of US$1.56 billion.

Separately, SanDisk Corp, which makes memory chips used in mobile devices, declined as much as 16 percent in after-hours trading after giving a second-quarter sales forecast that fell short of some analysts’ estimates.

SanDisk said revenue would decline to about US$1 billion, plus or minus US$50 million. Analysts on average had estimated sales of US$1.28 billion, according to data compiled by Bloomberg.

Meanwhile, Freescale Semiconductor Holdings I Ltd, which said chief executive Rich Beyer is retiring, reported a loss of US$9 million, or US$0.04 a share, on revenue of US$950 million.

The company forecast second-quarter sales of US$975 million to US$1.025 billion. That compared with an average analyst estimate of US$1.017 billion.

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