Advanced Micro Devices (AMD) announced Monday that it is expecting to report a "significant" loss for its first fiscal quarter, due to lower-than-expected sales of its microprocessors. AMD sells the K6-2 line of processors, which compete with Intel's Celeron and Pentium II chips. The company says that it will sell about 5 million CPUs this quarter, 500,000 less than expected. Additionally, 300 employees will be laid off as a result of corporate restructuring.

Interestingly, AMD also announced that it has begun manufacturing its next-generation K7 microprocessor, which will go on sale in June.