Shares of Advanced Micro Devices Inc. slid Wednesday after the computer chipmaker said it expects revenue in the current quarter to fall about 15 percent from the previous period, which would be at the low end of its most recent projections.
Rob Herb, AMD’s chief sales and marketing officer, said at a technology conference in Santa Clara that demand for flash memory chips–which are used in cell phones, digital cameras and other consumer devices–is so weak that revenue in that category is expected to fall 30 percent this quarter.
He said that would lead to a revenue decline “in the 15 percent range.” AMD’s most recent guidance, issued July 12, estimated revenue would fall 10 to 15 percent.
The consensus estimate, as tracked by Thomson Financial/First Call, is for AMD to post an operating loss of 8 cents a share, on $853 million in revenue. In the year-ago quarter, AMD’s revenue was $1.2 billion.
AMD shares fell 66 cents, to $14.20, Wednesday on the New York Stock Exchange.
