Intel rival reports earnings in line with estimates and sales that are better than expected.
July 14, 2004: 4:43 PM EDT
NEW YORK (Reuters) - Chip maker Advanced Micro Devices Inc. Wednesday reported a quarterly profit after a loss a year earlier amid healthier demand for personal computers and cellular phones.
AMD, however, said it expected sales to rise only modestly in the third quarter, and its shares fell 2 percent in after-hours trading.
In its second quarter, the Sunnyvale, Calif.-based company reported a profit of $32 million, or 9 cents a share, compared to a year-earlier loss of $140 million, or 40 cents a share. This matched Wall Street's consensus estimate.
Second-quarter sales rose 96 percent from the last second quarter to $1.26 billion. Wall Street had been expecting a revenue of $1.24 billion, according to a survey of analysts by Reuters.
On Tuesday, AMD's arch-rival, Intel Corp. posted an 18 percent rise in quarterly revenue but warned that inventories of unsold and unfinished products grew sharply and that profit margins would be weaker than expected for the year.
Shares of AMD (AMD: Research, Estimates) fell 76 cents, or 5.2 percent, in trading on the New York Stock Exchange Tuesday.
For the third quarter, AMD said it expected sales to rise "moderately." Analysts had expected a revenue increase to $1.34 billion.
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