AMD Lowers Forecast for the Quarter

by Anton Shilov
06/24/2003 | 12:45 PM

AMD today announced that sales for the second quarter ending June 29, 2003 are anticipated to be approximately $615 million. The company’s projection made in connection with the release of first quarter results was for second quarter sales to be at least $715 million.

According to AMD’s CFO, the anticipated global sales improvement in the month of June had not materialized as the company had anticipated. In particular, the decline in personal computer and handset sell-through in China and other Asian markets, largely related to the SARS epidemic, significantly affected AMD’s sales in the second quarter, Robert J. Rivet said today.

Intel’s Second Quarter of Fiscal 2003 is within expectations. The largest semiconductor maker expects revenue to be between $6.6 billion and $6.8 billion, as compared to the previous range of $6.5 billion to $7.0 billion. The midpoint of $6.75 billion said in mid-quarter update is even higher compared to the initial figure of $6.70 billion.

I believe that aggressive roll-out of i865-series chipsets and rapid inventory clear-outs of i845-series happened in May and April also impacted sales of AMD platforms.

AMD will report its second quarter 2003 results on July 16, 2003. AMD's share price has begun to drop. It currently stands at $6.19, down 6.07%.