Advanced Micro Devices Inc. today slashed its second quarter revenue forecast 14% blaming the poorer-than-expected performance on the SARS virus outbreak, which led to weak PC and wireless handset sales in Asia.
The microprocessor and flash memory supplier said revenue in the quarter ending June 29 would be approximately $615 million, $100 million below its earlier estimate for $715 million.
"The anticipated global sales improvement in the month of June did not materialize," said Robert Rivet, chief financial officer of AMD, Sunnyvale, Calif., in a statement.
"In particular, the decline in personal computer and handset sell-through in China and other Asian markets, largely related to the SARS epidemic, significantly affected AMD's sales in the second quarter," Rivet said.
AMD did not comment on its profit outlook although analysts polled by First Call were expecting the company to report a net loss of 28 cents per share.
The consensus revenue estimate for the company was $723 million.
AMD, Sunnyvale, Calif., is expected to report its results on July 16.