Advanced Micro Devices Inc says that disappointing sales resulting from lower-than-anticipated orders during the summer are expected to result in sharply reduced profits for the quarter that ended Friday. After surging from $284m in sales in AMD’s first quarter which ended in March to $308m in the second quarter, softening demand in the personal computer market over the summer is expected to result in third quarter sales at first quarter levels, says chairman and chief executive Jerry Sanders. The strong growth in shipments during the June quarter, especially for our programmable logic products, appears to have resulted in inventory building at our largest customers; this unexpected setback in sales growth during the summer quarter will result in sharply reduced earnings. We believe component inventories at many of our customers in the personal computer industry are at undesirably high levels.
