U.S. chip maker Advanced Micro Devices Inc on Tuesday reported a quarterly loss broadly in line with expectations and posted a sharp dip in revenue from a year ago as it grapples with a downturn in computer sales.

The No. 2 microprocessor company behind industry leader Intel Corp reported a first-quarter loss of $416 million, or 66 cents per share, compared with a loss of $364 million, or 60 cents per share, in the year-ago quarter.

Adjusted for certain items, it reported a loss of 62 cents per share. Analysts, on average, had forecast a loss of 63 cents per share, according to Reuters Estimates.

AMD, which recently split its operations into chip design and manufacturing arms, reported revenue of $1.18 billion, a 21 percent drop from a year ago, but ahead of analysts' average estimate of $983.8 million.

AMD estimated weaker second-quarter revenue from its core microprocessor business, excluding its new manufacturing unit, citing macroeconomic conditions, limited visibility and historical seasonal patterns.

AMD's shares fell 4.5 percent to $3.15 in after-hours trading from a close at $3.36 on the New York Stock Exchange.

(Reporting by Bill Rigby; Editing by Richard Chang)