AMD Estimates Loss Widens On Lower Sales, Margins

(RTTNews) - Chip maker Advanced Micro Devices Inc (AMD) on Thursday reported second-quarter net loss of $181 million or $0.23 per share compared with a loss of $36 million or $0.05 per share last year.

Excluding items, adjusted loss for the quarter was $0.17 per share compared with a profit of $0.05 per share a year ago.

Revenues for the quarter were down 35 percent at $942 million compared with $1.44 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.17 per share on revenues of $950.5 million for the quarter. Analysts' estimates typically exclude special items.

Gross margin shrank to 25 percent from 35 percent a year ago.

The results were expected as AMD earlier this month warned of weak revenues, citing pale consumer PC demand hurting its Original Equipment Manufacturer APU sales.

For the third quarter, the company expects revenues to increase 6 percent, plus or minus 3 percent, sequentially. Analysts expect revenues of $1.05 billion.

Known for processors used in personal computers, AMD has been hurt by the slowing demand for PCs and notebooks as tablets and smartphones gain prominence.

The company has ceded ground to larger rival Intel Corp (INTC) and also faces competition from Nvidia Corp (NVDA). To prop up, AMD has diversified and currently also makes chips for video game consoles.