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AMD shares fall after hours on outlook

The Associated Press

NEWS: Advanced Micro Devices Inc. reported Thursday that it moved to a profit for its fiscal third quarter. But the microchip maker saw a steep decline in sales of chips for notebook computers, and the company's shares fell in after-hours trading.

DETAILS: AMD, like many of its peers, has struggled as weak PC sales have hurt demand for its products in recent years. The company has shifted its focus to other segments, such as tablets, game consoles and cloud servers, for growth.

NUMBERS: AMD earned $48 million, or 6 cents per share, for the quarter that ended Sept. 28. That compares with a loss of $157 million, or 21 cents per share, last year. Revenue jumped to $1.46 billion from $1.27 billion.

On an adjusted basis, the company earned 4 cents per share versus a loss of 20 cents per share last year.

Analysts polled by FactSet were anticipating earnings of 4 cents per share on revenue of $1.46 billion.

Sales of chips for desktop and notebook computers fell 15 percent from last year, with falling notebook chip sales partly offset by rising desktop chip sales.

FUTURE: AMD said that it expects its fourth-quarter revenue will increase 5 percent, plus or minus 3 percent, over its third-quarter revenue. That calculates to a revenue forecast between $1.49 billion and $1.58 billion.

Analysts had forecast revenue of $1.52 billion for the quarter.

STOCK: Shares of the Sunnyvale, Calif., company fell 31 cents, a more than 7 percent decline, to $3.78 in after-hours trading following the report. Its shares closed regular trading Thursday unchanged at $4.09.