AMD issued a warning that it won't meet its first quarter financial outlook. The company expected a revenue of $1.6 to $1.7 billion but won't meet this because of the processor price war with Intel.
Sunnyvale-based AMD did not disclose details of the revenue shortfall in a brief statement before financial markets opened Monday. CEO Hector Ruiz was expected to update the first-quarter guidance during a presentation later in the day at the Morgan Stanley Technology Conference in San Francisco.
Analysts surveyed by Thomson Financial before the warning were expecting, on average, AMD to lose 25 cents per share on revenue of $1.66 billion for the first quarter.
People who bought AMD stock a year ago must be pulling their hair out now. A year ago in March 2006 AMD's stock traded for nearly $40 a share, today this has dropped below $14.