AMD Warns It Won't Meet 1Q Outlook
Advanced Micro Devices Inc. warned Monday that it was unlikely to meet its first-quarter revenue guidance of $1.6 billion to $1.7 billion, the latest in a series of disappointments for investors in the struggling chip-maker.
The company is hurting from a brutal price war with much-larger rival Intel Corp. and has been punished by investors for a product lineup that some say is in dire need of an upgrade.
Sunnyvale-based AMD did not disclose details of the revenue shortfall in a brief statement before financial markets opened Monday. CEO Hector Ruiz was expected to update the first-quarter guidance during a presentation later in the day at the Morgan Stanley Technology Conference in San Francisco.
Analysts surveyed by Thomson Financial before the warning were expecting, on average, AMD to lose 25 cents per share on revenue of $1.66 billion for the first quarter.
The company's stock fell 26 cents, or 1.8 percent, to $13.92 in early trading on the New York Stock Exchange.