Advanced Micro Devices said on Friday that a price war with its chief rival, the Intel Corp, had driven down third-quarter revenue by 22 percent from the second quarter and widened its net loss to as much as US$220 million.
For the quarter ended Sept. 30, Advanced Micro said shipments of personal computer chips remained at the same level as the second quarter, when the company sold 7.7 million of its Athlon and Duron microprocessors. Sales of flash memory, used in devices like cellphones, declined about US$100 million from US$316 million in the previous quarter, as expected.
In spite of the steady unit sales, Advanced Micro said preliminary financial results showed that revenue fell to US$766 million, a decline of 22 percent from the second quarter and 37 percent from the period last year, when sales were US$1.2 billion. Advanced Micro had predicted that its sales would fall 15 percent, compared with the second quarter. As a result, the company said it expected to report a net loss, excluding special items, of US$90 million to US$110 million, or US$0.26 to US$0.31 a share. The figures do not include one-time charges of US$80 million to US$110 million related to two plant closings and job cuts that Advanced Micro announced last month.
Advanced Micro, which is based in Sunnyvale, California, followed several other technology companies in warning Wall Street this week about a difficult quarter. Unlike the others, the chipmaker did not blame the terrorist attacks. Instead, it faulted Intel for driving down prices.
A spokesman for Intel declined to comment on Advanced Micro's charges but said Intel sells the fastest microprocessors on the market -- a claim that Advanced Micro disputes.
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