AMD yesterday defended its flagging financial results saying it would turn its business around once its quad core processor was released.

Company shares hit a 12 month low on Monday after the chip manufacturer announced it would not meet its revenue guidance for the second quarter.

According to Reuters , this is because of a continuing price war with rival Intel - which has seen the company's main processors dropping in price, reducing the company's profit predictions.

AMD's chief executive Hector Ruiz said another factor was his company not supporting computer resellers as perhaps they would have liked.

The company's quad-core processor is not due for release until later in the year. Rival Intel released its quad-core processor at the Consumer Electronics Show ( CES ) in January.