AMD (AMD) - Get Report attempted to create a little rumble of its own to steal Intel's thunder after market Thursday. The chipmaker announced it would turn in better-than-expected revenues in the fourth quarter, an hour and a half before Intel's midquarter update.
When it reported third-quarter earnings Oct. 17, AMD had predicted it would achieve flat to high single-digit revenue growth in the fourth quarter based on current economic conditions, and it lowered revenue estimates for its foundry and non-PC chip businesses. On Thursday, the company revised that number upward, saying it will grow revenues 10% or more from the third quarter's $765.9 million in revenue, or above $842 million. That would far outpace the Street's hopes for $778.9 million in fourth-quarter revenues from AMD.
In the third quarter, AMD's revenue declined 22% sequentially as the PC market continued to languish. The company lost 28 cents that quarter and expects to also post a loss in the fourth. The company did not specify how big the loss would be on Thursday, but said it would be reduced from the third-quarter level. Analyst consensus before the announcement called for a loss of 27 cents a share. The company expects to be profitable again in the second quarter of 2002.