Advanced Micro Devices lost $105.5m (£64.33m) in the third quarter, compared to a one million profit a year earlier.
Sales fell to $662.2 million from $685.9 million as the troubled chip maker continued to feel the impact of competition with Intel. Still, the loss was not as bad as analysts expected. The consensus estimate was a loss of 97 cents per share, according to First Call. In the quarter, AMD lost 72 cents per share.
Chairman and CEO Jerry Sanders said AMD was confident it could manufacture more than one million of its new Athlon chips but warned that "unit sales are expected to be gated by infrastructure support limitations resulting from the continuing effects of the Taiwan earthquake."