AMD Says Revenue Will Be at Low End of Forecast

Computer chip maker Advanced Micro Devices Inc. said it expects revenue in the current quarter to fall about 15%, which would be at the low end of its most recent projections.

Rob Herb, AMD’s chief sales and marketing officer, said demand for flash memory chips--which are used in cell phones, digital cameras and other consumer devices--is so weak that revenue in the category is expected to fall 30% this quarter.

He said that would lead to an overall revenue decline “in the 15% range.” AMD’s most recent guidance, issued in its quarterly earnings report July 12, estimated a revenue plunge of 10% to 15%.

Analysts were expecting a 13% revenue decline from last quarter, according to Thomson Financial/ First Call. The consensus estimate is for AMD to post an operating loss of 8 cents a share, on $853 million in revenue. In the comparable quarter last year, AMD’s revenue was $1.2 billion.

Shares of Sunnyvale, Calif.-based AMD fell 66 cents to close at $14.20 on the New York Stock Exchange.