AMD has made a loss of $64.6 million in its second quarter despite the fact that sales of its K6 processor have risen.
The company turned over $526.5 million in the quarter, compared with $594.6 million in the same period a year ago.
While sales of the K6 rose by 26 per cent in the quarter, a more worrying trend for AMD is that elements of its core business declined significantly. Sales of its comms chips fell by a third, compared to the same period last year, while flash memory sales dropped by 27 per cent and programmable logic devices fell by nine per cent.
Jerry Sanders, CEO of AMD, warned that the outlook for his company in the future was mixed. The drop in semiconductor sales had affected revenues, although he said there wss some evidence that the introduction of Windows 98 had partly improved PC sales.
While AMD's high profile product is its K6 processor, the company relies on other elements of its business to support its development. The K6 has only recently begun to start shipping in volume and cannot support AMD's entire operations on its own.
In addition, AMD has large debts associated with the building of advanced fabrication facilities in Dresden and in the US.
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