Warnings Didn't Tell the Whole AMD Story

Despite issuing two sales warnings in about a month, Advanced Micro Devices (AMD Quote) produced a loss in its second quarter that was 9 cents wider than analysts expected.

The Sunnyvale, Calif., microprocessor maker lost $184.9 million, or 54 cents a share, in the period ended June 30, compared with net income of $17.4 million, or 5 cents a share, a year ago. Sales came in as expected at $600.3 million, compared with $902.1 million a year ago.

The company cited a weaker-than-expected personal computer market partially offset by higher flash-memory sales to mobile phone makers. Microprocessor sales fell 35% to $380 million in the quarter.

Total memory sales were $175 million in the second quarter, compared with $316 million in the second quarter of 2001. Flash-memory unit shipments increased in the second quarter of 2002 and bit shipments were a record.

The company forecast total sales rising modestly in the third quarter from the second but said it will post a loss in the period.