AMD expects its sales of flash memory products to decline by almost 30% compared to second quarter results. The company believes this will contribute to a 15% decline in revenue compared to the second quarter.
Rob Herb, AMD's executive vice-president and chief sales and marketing officer, said the company was expecting to report an operating loss for its third quarter.
AMD had previously forecast a decline in revenue of between 10% and 15%.
On a more positive note, AMD said it would continue to benefit from increasing sales of PC processors, in particular its Athlon and Duron versions, which accounted for a combined 7.8 million sales during the second quarter.