AMD slashes fourth quarter predictions

NOT UNEXPECTEDLY, AMD has had to slash its forecasts for fourth quarter revenues, blaming sluggish customer demand and the world credit crisis.

The chip company revised its estimate for expected revenue from continuing operations to about $1.19 billion for Q4, down 25 per cent from the Q3 and below previous analyst predictions of $1.52 billion.

Last time AMD pulled a number out of its hat back in November, the firm had predicted the fourth quarter revenues to be flat against the third quarter, even as rival Intel sheepishly admitted it was having to cut back on more optimistic fourth quarter predictions.

After finally ‘fessing up that things were much worse than they had seemed just a month ago, AMD shares took a hit, falling 12 cents, to $2.08. µ