AMD Again Warns of Lower Revenue

Advanced Micro Devices Inc. issued its second warning in two weeks, cutting its second-quarter sales forecast by up to a third from its original target and raising fears the company was falling farther behind its main rival, Intel Corp., as the PC industry they supply stumbles.

AMD said it sees second-quarter sales of about $600 million. On June 18, it had projected sales of $620 million to $700 million, down from an earlier forecast of $820 million to $900 million.

AMD at that time attributed its poor sales performance to a weak market for PCs and also forecast a substantial second-quarter operating loss. A company spokesman declined to elaborate on reasons for the revised outlook.

Shares of AMD, which plans to release results on July 17, fell 37 cents to $8.43 on the New York Stock Exchange.