(By Balachander) Chipmaker Advanced Micro Devices Inc. (NYSE:AMD) reduced its revenue forecast for the third quarter, citing weaker-than-expected demand across all product lines caused by the challenging macroeconomic environment.
The news sent AMD shares plunging 8.13 percent in extended trading on Thursday.
The company now expects revenue for the quarter ended Sept. 29 to decline roughly 10 percent from the prior quarter, versus prior projections of a revenue drop to 1 percent, plus or minus 3 percent.
AMD currently expects gross margin to contract to 31 percent from around 44 percent guided earlier due to an inventory write-down of about $100 million because of lower anticipated future demand for certain products.
The company expects operating expenses to decrease roughly 7 percent from the prior quarter.
For the second quarter, AMD earned 6 cents a share on revenue of $1.41 billion on a non-GAAP basis. The company reported non-GAAP gross margin of 46 percent .
The stock, which has been trading in the 52-week range of $3.09 to $8.35, ended at $3.20 on Thursday.