AMD posts 2Q loss as revenue falls; tops Street

Advanced Micro Devices posts 2nd-qtr loss as revenue falls; results beat Street expectations

Associated Press

SUNNYVALE, Calif. (AP) -- Chip maker Advanced Micro Devices Inc. posted a loss for the second quarter on Thursday, reversing a year-ago profit, as lower expenses could not make up for declining revenue in the midst of a worldwide PC slump.

AMD's shares fell in extended trading, even though the results and its outlook beat Wall Street's expectations.

The company posted a loss of $74 million, or 10 cents per share, for the April-to-June period. That compares with earnings of $37 million, or 5 cents per share, in the same period a year earlier.

Adjusted earnings were 9 cents per share in the latest quarter.

Revenue fell 18 percent to $1.16 billion, from $1.41 billion a year earlier.

Analysts, on average, were expecting a loss of 12 cents per share, on revenue of $1.11 billion, according to FactSet

For the current quarter, AMD expects revenue to grow by 19 percent to 25 percent sequentially, implying a forecast of $1.38 billion to $1.45 billion. Analysts were expecting revenue of $1.23 billion, an increase of 11 percent.

AMD's report comes the day after larger rival Intel Corp. posted disappointing results, as the sales of processors for servers and mobile gadgets were not enough to make up for the decline in PC sales.

Shares of AMD fell 14 cents, or 3 percent, to $4.50 in after-hours trading. The stock closed up 26 cents, or 5.9 percent, at $4.64.

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