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Last Updated: Tuesday, 24 June, 2003, 20:28 GMT 21:28 UK
Chipmaker blames Sars for poor sales
The US chipmaker Advanced Micro Devices (AMD) has blamed the outbreak of Sars for a drop in its revenues.

On Tuesday, the number-two maker of microprocessors warned that its quarterly sales would not meet its targets because of poor sales of computers and mobile phones in Asia.

"The anticipated global sales improvement in the month of June did not materialise as we had anticipated," said Robert Rivet, AMD's chief financial officer.

The company expects second-quarter sales of $615m, which would be 14% below the $715 million it forecast in April.

The news sent AMD's shares to a two-month low in early trading. They closed down 5% at $6.27.

An economic slowdown and cuts in corporate spending have pushed the semiconductor industry into its worst ever downturn.

AMD is not alone in blaming its misfortune on the deadly virus Sars, which has infected more than 8,000 people across the world.

Other companies that have attributed lower profits to Sars include Eastman Kodak, The New York Times, Motorola and fellow chipmaker Texas Instruments.


SEE ALSO:
Eastman Kodak warns of Sars impact
19 Jun 03  |  Business
Sars hit airlines 'more than war'
13 Jun 03  |  Business
Nokia hit by weak dollar and Sars
10 Jun 03  |  Business
AMD to cut 2,000 jobs
14 Nov 02  |  Business



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