AMD posts third straight quarterly loss, causing its shares to drop
AMD shares fell more than 12 percent today after the company reported a loss of $330 million in its second quarter. Tech companies Apple (AAPL) and Yahoo (YHOO) topped expectations in earnings Tuesday and chipmakers Intel (INTC) and Texas Instruments (TXN) also beat estimates. But AMD is still fighting falling chip sales over the past year.
"After Intel, people got carried away and now reality is setting in," Srini Pajjuri, analyst at Calyon Securities USA Inc., told Bloomberg News. While Intel expects a five percent increase in the current quarter, he said, AMD's sales forecast shows that it's not faring as well.
Second quarter sales fell 13 percent, compared with last year's second-quarter, to $1.18 billion, the company said in a press release. AMD had a loss of 49 cents a share, compared with $1.2 billion, or $1.97, a year earlier. That includes a $86 million gain, or 13 cents a share, from the sale of previously written-down inventory.
The chipmaker continues to lose ground against Intel, which beat Wall Street estimates and posted revenue of $8 billion in its second quarter results a week ago. Intel is seeing improvement, in part, from sales of its Atom microprocessors and chipsets -- used in netbooks, which have been strong sellers. While AMD seems mired in its slowdown, Intel has been saying it believes a recovery is beginning.
Anthony Massucci is a senior writer for DailyFinance. You may follow him on Twitter at hianthony.