Slow Sales Increase Advanced Micro’s Losses

Advanced Micro Devices Inc. said that lower-than-expected sales from its K6 microprocessors will result in lower revenue and a larger-than-expected operating loss in the third quarter. The semiconductor maker said it produced and shipped 1 million K6 microprocessors and still plans to produce about 2 million in the fourth quarter. The K6 chip is designed to enhance sound and graphics on computers and competes with Intel Corp.’s Pentium II microprocessors. Analyst Daniel Niles at Robertson, Stephens & Co. said the Sunnyvale-based company is having problems producing chips with high speeds. “It’s a production problem,” he said. “. . . They’re not getting as many good parts. The speeds aren’t quite as good.” AMD shares fell Tuesday by 19 cents to $32.56.