Thursday, July 20, 2006
Advanced Micro Devices said quarterly sales jumped 53 percent but fell short of sales targets owing to weakening PC demand and ongoing price wars with Intel.
AMD reported earnings of 18 cents a share for its fiscal second quarter ended July 2, up from three cents a year earlier. Analysts had been looking for profits of 22 cents a share, according to a survey by Thomson First Call.
Net income rose to $89 million from $11 million. Sales slipped to $1.22 billion from $1.26 billion a year ago, below forecasts of $1.25 billion.
"While we achieved 53 percent year-over-year sales growth and recorded our twelfth consecutive quarter of greater than 20 percent year-over-year microprocessor sales growth, we are dissatisfied by not reaching our second quarter sales target," Robert Rivet, AMD's chief financial officer, said in a statement.
"One reason AMD suffered this quarter had to do with a specific strategy that Intel targeted," said Samir Bhavnani, director of research for technology research firm Current Analysis. "Intel was really aggressive with pricing," and that, in turn, chipped away at AMD's market share.
By: DocMemory
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