AMD Q2 profits will miss forecasts by a mile
Weak flash memory demand blamed
AMD has warned its second quarter earnings will fall miles short of forecasts.
The chipmaker yesterday said sales for the three months ended July 1 were $985 million, down 17 per cent down on the first quarter.
In April the company said it was expecting a maximum drop in sales of ten per cent.
Revenue is also down 11 per cent down on Q2 last year.
Net profits are expected to fall to between three and five cents per diluted share, the California-based company said. Analysts were expecting 27 cents per share.
"First, demand for flash memory devices was and continues to be weaker than expected," AMD said in a statement.
"Second, competitive pressures in the PC processor market depressed the company's average selling prices."
AMD, which aims to control 30 per cent of the chip market by the end of the year, is due to report its Q2 figures on July 12. ®