AMD has become the latest manufacturer to issue a profit warning for its end of year results, blaming sluggish PC sales.
The Intel rival said its fourth quarter sales would be flat or "nominally higher" than its third quarter revenue of $1.2bn. AMD also said unit shipments would be lower than the eight to nine million units it had predicted for the quarter, but slightly higher than last quarter's actual shipment of 6.8 million units.
The chip manufacturer cited weak demand for consumer PCs in the US, following similar warnings by Gateway, Apple and Intel. Jerry Sanders, AMD's chairman and chief executive, said: "While the slowdown in demand for PCs has been attributed variously to excess channel inventory, a slowing economy, or buyer apathy, we believe it is temporary."
AMD delighted Wall Street in its previous quarter by reporting record earnings, despite tougher than expected competition. It saw net income rise to $409m compared with a loss of $106m a year ago, while sales almost doubled from $662m to $1.21bn, buoyed by strong sales of PC chip and flash memory devices.
However, yesterday AMD said it expects its earnings per share, for the quarter ending 31 December, to be between 50 and 60 cents - way below Wall Street's expectation of 67 cents. The company is expected to release its results on 19 January.
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