CFO Robert Rivet said that the anticipated sales improvement in June did not materialize. In particular, the decline in PC 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, he said.
The forecast is in sharp contrast to that of market leader Intel Corp, which earlier this month narrowed, but did not lower, its second quarter revenue guidance range. It expected revenue to come in between $6.6bn and $6.8bn for the quarter to June 28, compared to its original range of $6.4bn to $7bn.
AMD’s projected income is a modest 2.4% above last year’s figure. The company has been bragging that its Opteron processor outperforms competitors. But after languishing in the red for over a year, AMD appears doomed to struggle in an unequal contest with Intel until the market fully recovers.
Source: Computerwire
