AMD Expects to Beat 4th-Quarter Forecasts

Advanced Micro Devices Inc., Intel Corp.’s biggest rival in the microprocessor market, may break even in the fourth quarter instead of reporting the loss analysts forecast, Chief Executive Jerry Sanders said. The company’s shares surged on the forecast. “Our break-even goal is attainable,” Sanders said at an analyst meeting at the company’s Sunnyvale, Calif., headquarters. “Our business is terrific.” Sanders’ forecast surprised many analysts, who had expected a loss of 35 cents a share, according to First Call Corp. AMD is counting on its new Athlon chip to help it return to profitability. It expects to make at least 1 million of the high-powered chips this quarter and ship at least 5 million in the fourth quarter--more than it originally expected--because of demand for personal computers. It expects revenue to exceed $800 million. In the year-earlier quarter, AMD had net income of $22.3 million, or 15 cents, on revenue of $788.8 million. AMD’s shares closed up $5.25, or 22%, at $28.25 on the New York Stock Exchange.