AMD Warns On Q4 Operating Income

There’s more trouble in the chip business. Advanced Micro Devices (AMD) late Thursday afternoon announced that its fourth quarter operating income excluding the results from ATI and merger-related charges will be “positive but substantially lower than in the third quarter.”

AMD said its gross margin and operating income “were impacted by significantly lower microprocessor average selling prices, which largely offset a significant increase in unit sales.”

The company said revenue excluding ATI-related segments would be up 3% from the $1.33 billion reported in the third quarter, which implied $1.37 billion.

The company will report complete results on January 23.

In after-hours trading, the stock is down 28 cents at $19.90.