AMD warns on second quarter sales Chipmaker sees $20-100 million shortfall
By Emily Church, CBS.MarketWatch.com
Last Update: 3:54 AM ET July 3, 2002
SUNNYVALE, Calif. (CBS.MW) - Chipmaker Advanced Micro Devices early Wednesday warned its second quarter sales are expected to miss its target and come in at $600 million.
Shares (AMD: news, chart, profile)
dropped 15 percent in pre-open
trading on Instinet in London to
$7.50 on the warning. It was the second warning in a month
for the company, which on June 19
projected second quarter sales to be
in the $620 million to $700 million
range. At the time, analysts were
expecting June sales at an average
$841 million.
AMD's quarter ends June 30; results
are slated for released on July 17.
AMD offered no explanation for the anticipated $20-100 shortfall in sales in its terse statement
to the market. On June 19, AMD blamed a weak personal computer market for the
lower-than-expected sales in the second quarter.
"The back-to-school shopping season is not shaping up to be a real barn burner," said AMD
Chief Financial Officer Bob Rivet at the time. See full story on earlier AMD warning.
AMD's main rival Intel Corp. (INTC: news, chart, profile) warned on June 6 that its sales for
the quarter would miss expectations. Intel shares were down 3 cents in euro trading in Frankfurt
at $16.54.
European chipmakers were lower. Germany's Infineon (IFX: news, chart, profile) was down
0.6 percent; STMicroelectronics (STM: news, chart, profile) was down1.4 percent and
equipment maker ASML (ASML: news, chart, profile) was down 0.7 percent.
Analysts have attributed weaker sales at the chipmakers during the current quarter both to a
decline in unit sales as well as in prices as the companies battle for market share.
Emily Church is London bureau chief of CBS.MarketWatch.com.

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