AMD Warns Wall Street

Advanced Micro Devices

In a midquarter update, AMD said it expected to report sales for the period of between $620 million and $700 million. Earlier, AMD said it anticipated revenue of between $820 million and $900 million.

"At these depressed sales levels, the company anticipates a substantial operating loss for the quarter," Sunnyvale, Calif.-based AMD said in a statement. The company is expected to release official earnings on July 17.

"As we have seen in previous statements from a number of other companies, there is broad weakness in the personal computer market and it is adversely affecting AMD," company CFO Robert Rivet said in the statement. "The processor business, particularly in Europe and North America, is weak. Our flash memory business is improving and expected to show sequential sales growth."

Earlier in the quarter, rival Intel said it, too, could see lower-than-anticipated revenue for the quarter. Intel said sluggish sales in Europe, as well as stronger sales of its lower-end Celeron processors, were among the causes.