AMD lowers forecasts

AMD JUST ANNOUNCED lower earnings for its first financial quarter, it is now set to earn $1.225 billion.

It blames the revenue shortfall on the price war with Intel, although it won't directly say it. Since the quarter is already over, one would guess this number is pretty accurate.

In any case, to make up for it, it will lower capex by about $500M in 2007, but said this will not change any numbers for the current year. AMD is also going to stop hiring in all but critical positions, and slow discretionary spending.

This means a double whammy of no donuts at meetings and no new people to deliver them. The horror. µ