Chipmaker AMD posts second-quarter loss, stock dives
Reuters
Published Jul 17, 2014 04:46PM ET
Chipmaker AMD posts second-quarter loss, stock dives
By Noel Randewich
SAN FRANCISCO (Reuters) - Advanced Micro Devices Inc posted a net loss for the second quarter and gave a revenue forecast for the current quarter that missed expectations, sending its shares sharply lower.
AMD's stock fell 15 percent in extended trade on Thursday after the company said it had a net loss of $36 million, or 5 cents a share, in the June quarter, compared with a loss of $74 million, or 10 cents a share, a year earlier. Excluding items, AMD earned 2 cents per share, compared with 3 cents expected by analysts.
A strong quarterly report this week from Intel Corp underscored expectations on Wall Street that the worst is over for a personal computer industry hammered by the mobile revolution. But in addition to slow PC sales, AMD has struggled recently to stem market-share losses to Intel.
AMD's revenue rose 24 percent to $1.44 billion in the second quarter. The company said its third-quarter revenue would rise 2 percent, plus or minus 3 percent, from the June quarter. That would be about $1.47 billion.
Analysts on average had expected revenue of $1.44 billion in the second quarter and $1.57 billion in the third quarter, according to Thomson Reuters I/B/E/S.
Shares of AMD were down 15.3 percent at $3.87 in extended trade after closing down 1.93 percent at $4.57.
(Editing by Matthew Lewis)
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