Semiconductor maker Advanced Micro Devices has reported a hefty second-quarter loss, despite better than expected sales of its new K6 computer chip. The Sunnyvale, California-based company, which makes Intel-compatible microprocessors and other computer chips, posted a net loss for the quarter ending June 28th of $64.5 million, or 45 cents a share, on revenues of $526.5 million. This compared with profits of $10 million, or 7 cents a share, on revenues of $594.5 million in the same quarter a year ago. Analysts had expected the company to report a loss for the latest quarter of 20 cents a share, according to the First Call research service.

AMD introduced the K6 chip with improved multimedia technology in May. The K6, a clone of Intel's Pentium II, was the first upgrade of AMD's microprocessor since it was launched in April 1997. But strength in the K6 business failed to offset weaker sales of AMD's non-chip products as well as its memory chips. AMD, which is the second largest US chip maker behind Intel, also blamed its weak financial report on economic doldrums that have plagued much of Asia.