AMD damps down expectations ahead of Q3 results

By Alun Williams

Posted on 5 Oct 2004 at 12:09

AMD has revised its financial outlook, ahead of reporting third quarter results later this week.

In previous years - when AMD was struggling to regain profitability - Flash memory sales were the bedrock of the company's revenues. Now, however, with AMD prospering with its AMD64 processor platform, it seems those memory sales are softening.

While net income is anticipated to be ahead of the prediction reported with second quarter results - off the back of strong processor business - the company has warned of slightly lower sales in its Flash market.

'Our gross margin and net income are expected to improve sequentially from the second quarter of 2004, largely due to significantly higher sales and stronger ASPs in our processor business,' said Robert J. Rivet, AMD's Chief Financial Officer. 'Although third quarter sales are anticipated to be lower than projected due to softness in our profitable Flash memory business, sales in our microprocessor business remained strong driven by increased demand for AMD64 processors.'

AMD will report its third quarter results after markets close on Thursday, 7 October.