AMD Shares Fall in Wake of 3Q Loss

Shares of chip maker Advanced Micro Devices fell more than 3% Friday report, nearly 400 million US dollars loss for the third quarter.

Worlds second-largest maker of microprocessors lags far behind the Intel Corporation has lost 1.6 billion US dollars, and so far this year.

AMD shares fell 50 cents, or 3.4 percent, to 14.05 US dollars in morning trade Friday.

After the stock market closed Thursday, Yahoo based on the AMD reported a loss 396 million US dollars, or 71 cents per share, in the July-September quarter. This compared with a profit of 236 million US dollars, or 27 cents per share, during the same period a year ago .

Thomson Financial analysts were expecting AMD company lost 62 cents a share.

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AMD said, many analysts have been excluded in their estimates, 120 million US dollars, or 22 cents a share one-time expenses related to its acquisition of 5.6 billion US dollars graphics chip maker ATI Technologies Inc. and other activities.

On this basis, AMD said it lost less money Wall Streets forecast.

The company did not provide profit figures do not include all one-time charges, the company which generally exclude that draw a more complete picture investors on the health of day-to-day operation.

While AMD started back toward profitability, revenues continue to grow.

AMD sales of 1.63 billion US dollars for the recent period reflected a 23% increase over last year easily exceeded the average analyst forecast for 1.52 dollars billion.

AMDs revenue coupled with higher microprocessor sales and the first shipments, revenue of its new brand Opteron server chip, which introduced September is a key weapons, and their fight against Intels market share.

For the first nine months of this year, AMD lost 1.61 billion US dollars sales of 4.24 US dollars billion.

Sincerely PC demand in the rest of the world, is stimulating demand for microprocessors, the brain and as these computers, and help strengthen bilateral AMD Intel.

Last Tuesday, Intel reported a 43% third-quarter profit soared sales revenue reached 10.09 billion US dollars during the period.

Two companies are trying to appease analysts worried that a possible slowdown chip orders during the holiday season, caused by computer makers overestimated their demand. But Intel and AMDs management stated that demand remains strong, as well as between do not see any slack.

Intel Corporation provided an optimistic financial projections, AMD said it expects high fourth-quarter revenue.

Investors are encouraged by the improvement of AMDs closely watched gross margin margin, or the amount of a company on every dollar of earned income, once the cost , which spun off its products.

AMDs gross margin was 41 percent of revenue in the latest quarter low than the same period last year, but still soared more than 33% of its revenue in the second quarter. AMDs main gain, and with higher microprocessor sales and improve production and inventory management.

AMD customers also bought more expensive, and profitable chips in the latest period, the latest indication that fierce price war with Intel weakened.

Amid plunging prices and heavy spending to the installation of a new chip-making equipment their factories hurt Intel and AMD in the past year.

However, investors have punished AMDs stock on concern that the companys financial health, chopping share from 40 US dollars or more, in early 2006, a decline erased out more than 12 billion US dollars of shareholder wealth.

At the same time, Intels market value has increased substantially, from about 95 billion US dollars before was launched in July 2006 in a strong bargaining chip in the new lineup of more than 157 billion US dollars today. Stock appreciation of 64% in this span.