AMD Lowers Revenue Forecast

AMD cuts outlook, but doesn't blame PC market

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    NEWSLETTERS

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    Advanced Micro Devices has lowered its revenue and profit forecast for the third quarter. The company
     didn't blame the weak personal computer market. Instead, it pointed to manufacturing problems that left the company without some of its most expensive chips to sell.

    Advanced Micro Devices Inc. now expects revenue to rise 4 percent to 6 percent over the second quarter. It had previously forecast a gain of 8 percent to 12 percent. It expects gross margin of 44 percent to 45 percent. It had previously forecast 47 percent.

    The revisions reveal an unfortunately timed problem for AMD, the No. 2 maker of computer microprocessors. The PC market is in turmoil, straining AMD and rival Intel. On Wednesday AMD disclosed another pressure: its manufacturing issues at a factory in Dresden, Germany.