Analysts had expected AMD to post a loss of 45 cents a share, but the red ink amounted to 54 cents per share. Company revenue slid by 39 percent from last year, to $600.3 million. The loss was AMD's largest since Q2 1999, and was its fourth consecutive quarterly loss.
Sales of Athlon and Duron processors tumbled 35 percent from a year ago. The company was hit by both a 20 percent decline in processor shipments during the quarter as well as lower average prices for its chips.
Because AMD reported declining chip sales and Intel recently reported flat results, it appears that AMD lost marketshare to its rival during the quarter.
On the bright side, AMD executives believe that the second half of the fiscal year will improve, thanks to back-to-school PC purchases and the Christmas holiday. As such, it forecast a small revenue improvement in the second half of the year.