AMD Drops Sales Guidance, Says No Recovery in Evidence

More doubt was cast on the tech-recovery thesis Tuesday when microprocessor maker Advanced Micro Devices ( AMD) said second-quarter sales would fall short of its previous guidance.

The Sunnyvale, Calif., CPU maker expects to show second-quarter sales of $615 million, down from its previous projection of $715 million. Analysts surveyed by First Call were expecting sales of $723 million and a loss of 28 cents a share.

"The anticipated global sales improvement in the month of June did not materialize as we had anticipated," the company said. "In particular, the decline in personal computer and handset sell-through in China and other Asian markets, largely related to the SARS epidemic, significantly affected AMD's sales in the second quarter."

AMD's shares were recently down 31 cents, or 4.7%, at $6.28. Its much larger rival, Intel ( INTC), was up 2 cents to $20.39.

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