AMD, Transmeta Q3s reflect chip market doldrums

One day after Intel reported less-than-stellar results for its third quarter, the "other" two PC chip makers chimed in with their own bad news.

Advanced Micro Devices Inc. (AMD) and Transmeta Corp. Wednesday posted their third quarter earnings results after the close of the financial markets. Both vendors continued to suffer from the weak global economy and slower than expected PC sales.

AMD reported revenue of US$508 million for the quarter ended Sept. 29, a decline of 34 percent year over year. It posted a net loss of $254 million, which translated into a loss of $0.74 per share, according to a statement. Weak demand for consumer PCs was cited as the primary reason for the drop off.

Transmeta generated $6.4 million in revenue for its third quarter ending Sept. 27. This compares to $5.0 million in revenue in the same quarter a year ago. The company posted a net loss of $21.8 million or a loss of $0.16 per share, according to a statement.

Transmeta also pointed to low levels of end-user spending for the poor results.

The figures for AMD and Transmeta are both based on generally accepted accounting principles (GAAP).

The results followed on the heels of market leader Intel's third quarter report, which was issued Tuesday. Intel came in below analyst expectations, which sent the company's stock reeling in Wednesday's trading on the Nasdaq exchange.

Shares of AMD (AMD) and Transmeta (TMTA) both fell Wednesday. AMD dropped more than 16 percent to a close of $3.49. Transmeta shed more than 6 percent to end the day at $0.84.

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