AMD set to post Q3 loss

Profits pulled by price cutting induced 15 per cent revenue slump

AMD's third quarter isn't looking good and is almost certainly going to take the chip maker into the red.

When AMD posted its Q2 results, it admitted that it was forecasting a decline in revenues of 10-15 per cent during Q3. This week, the company's sales and marketing chief, Rob Herb, confessed that the drop will be at the top end of that range, according to an EBN report.

Knocking 15 per cent - AMD's current guidance - off Q2's revenues will be sufficient to put the company at a loss this quarter. To make matters worse, Flash memory sales are expected to be 30 per cent down on the previous quarter, Herb said.

It's all to do with prices it seems. Intel is cutting them, so AMD has to follow suit. So, while the company expects to sell as many processors as it did last quarter - 7.8 million of them; a record number, apparently - the unit price isn't enough to prevent a revenue slide. Oh dear. ®

Sponsored: Today’s most dangerous security threats