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AMD posts quarterly loss amid price war

Chipmaker posts its third quarterly loss in a row on Thursday as price war with rival Intel continues to take toll on results.
Written by Reuters , Contributor
Advanced Micro Devices, the second-biggest maker of computer processors, posted its third quarterly loss in a row on Thursday as a price war with rival Intel took a toll on results.

AMD said its net loss was $600 million, or $1.09 per share, for the second quarter ended June 30, compared with a profit of $88.9 million, or 18 cents a share, in the year-ago period. Revenue was 1.38 billion, up 13 percent from $1.22 billion a year earlier.

Excluding special items, analysts expected a loss of $432.9 million, or 80 cents per share. AMD said its net loss included 24 cents per share in charges, but it was not immediately clear how its result compared with Wall Street estimates.

After gaining market share against Intel in 2005 and most of 2006, AMD's fortunes took a dramatic downturn last year as Intel rolled out powerful new processors and slashed prices on old ones.

Shares in AMD have fallen nearly 23 percent so far this year, compared with a rise of nearly 25 percent for those of Intel. The companies make almost all the x86 processors that act as the brains of personal computers.

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