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AMD Posts Profits, Sales To Grow

AMD reported a $ 44 million third-quarter profit from a loss a year earlier, and predicted sales growth in the current quarter because of better-than-expected demand for its personal computers processors. AMD expected sales to be “driven by processor sales that exceed seasonal trends” in the fourth quarter, a traditionally strong period marked by winter holiday shopping for gadgets and computers. AMD’s outlook suggests that the electronics industry is quickly working through excess inventories of cellular phones and other products in Asia, and that AMD’s Athlon 64 and Opteron microprocessors will take market share from arch-rival Intel. AMD may have trouble meeting its own forecast, given fierce price competition for flash memory and the success of Intel’s lower-end Pentium 4 processors.

AMD reported a $ 44 million third-quarter profit from a loss a year earlier, and predicted sales growth in the current quarter because of better-than-expected demand for its personal computers processors. AMD expected sales to be “driven by processor sales that exceed seasonal trends” in the fourth quarter, a traditionally strong period marked by winter holiday shopping for gadgets and computers. AMD’s outlook suggests that the electronics industry is quickly working through excess inventories of cellular phones and other products in Asia, and that AMD’s Athlon 64 and Opteron microprocessors will take market share from arch-rival Intel. AMD may have trouble meeting its own forecast, given fierce price competition for flash memory and the success of Intel’s lower-end Pentium 4 processors.

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