Advanced Micro Devices Inc forecast current-quarter revenue above Wall Street’s expectations as it rushes to find new markets to offset its declining core business of PC chips.<\/p>\n
Like larger rival Intel Corp, AMD is trying to refocus its business as sales of laptops languish and consumers increasingly depend on smartphones and tablets.<\/p>\n
It shares fell nearly 6 percent after the report, erasing sudden gains in the last few minutes of the trading session.<\/p>\n
AMD on Thursday reported revenue of $1.09 billion, down from $1.59 billion in the year-ago quarter. It said June-quarter revenue would rise 2 percent, plus or minus 3 percent, compared with the March quarter.<\/p>\n
Analysts on average expected first-quarter revenue of $1.046 billion and June-quarter revenue of $1.071 billion, according to Thomson Reuters I\/B\/E\/S.<\/p>\n
“In a world of low expectations this is a decent report – a solid beat off of low expectations,” said Sanford Bernstein analyst Stacy Rasgon.<\/p>\n
When Intel posted its quarterly earnings on Tuesday, it also gave a revenue forecast above expectations, betting on a recovery in PC sales in the second half of the year.<\/p>\n
While Intel has deep pockets to fund research on new processors to catch up in tablets and smartphones, AMD faces declining cash flows and a more modest balance sheet.<\/p>\n
It is reducing operating expenses and refocusing its chip technology on new markets like communications, microservers, game consoles, digital signs and stripped-down “thin client” computers.<\/p>\n
AMD said in a statement it had a net loss of $146 million, or 19 cents a share, in the first quarter, compared with a loss of $590 million, or 80 cents a share, in the same quarter last year.<\/p>\n
Its adjusted loss per share was 13 cents. Analysts expected 18 cents.<\/p>\n
AMD’s stock fell 5.9 percent in extended trade, erasing a sudden spike from negative territory in the last half hour of normal trading that left it up 4.6 percent at $2.51 at close.<\/p>\n
AMD beats estimates, still struggling<\/a><\/strong><\/p>\n AMD to move beyond ailing PC market<\/a><\/strong><\/p>\n Tech to be hit hard by financial crisis<\/a><\/strong><\/p>\n