AMD warns of disappointing fourth quarter

Blaming falling PC processor prices, Advanced Micro Devices has warned that its holiday sales and profits fell short of its expectations.

In a statement late Thursday, the chipmaker said that it would report positive operating income for the fourth quarter but that profit would be "substantially lower" than in the prior quarter.

Fourth-quarter revenue, excluding its recently acquired ATI Technologies graphics business, increased about three percent from the $1.33 billion reported in the third quarter, AMD said. That's less than the "seasonally strong" fourth quarter that the company had predicted.

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