Weak demand for flash memory will drag down AMD sales for Q3. But net income will be up a little on Q2's $32m, reflecting the higher margins from sales of microprocessors, the chipmaker warned yesterday.

Previously, it expected sales to increase moderately from Q2's sales of $1.1262bn.

Now for a quote for Robert Rivet, AMD's CFO: “Our gross margin and net income are expected to improve sequentially from the second quarter of 2004, largely due to significantly higher sales and stronger ASPs in our processor business. Although third quarter sales are anticipated to be lower than projected due to softness in our profitable Flash memory business, sales in our microprocessor business remained strong driven by increased demand for AMD64 processors.” ®

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