SAN FRANCISCO Advanced Micro Devices Inc. Thursday (July 6) lowered its sales target for the second quarter, saying it now expects second quarter sales to be approximately $1.215 billion, down roughly 9 percent from first quarter sales of $1.332 billion.
AMD had previously said it expected second quarter sales to be flat to down slightly from first quarter sales.
AMD (Sunnyvale, Calif.) said second quarter sales of $1.215 billion would represent a 52 percent increase year-to-year.
Second quarter revenue was dragged down by weak sales of entry-level and mainstream mobile and desktop processors, AMD said. The company said it posed record sales of AMD Opteron processors, driven by continued strong demand for single-, dual- and multi-socket configurations for servers and workstations.
AMD's chief rival, Intel Corp., cut its own second quarter forecast on April 19. Intel said it expects its second quarter revenue to be between $8 billion and $8.6 billion. The company also cut its forecast for the year at that time, saying it expects 2006 revenue to be down about 3 percent from 2005, after earlier saying it expected 6 to 9 percent growth.
AMD is scheduled to report its second quarter results after market close on July 20.