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AMD forecasts 11 per cent drop in revenue for second quarter

Blames China and Europe
Tue Jul 10 2012, 11:25
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CHIP DESIGNER AMD has reversed its second quarter revenue forecast from a marginal increase to predicting an 11 per cent drop.

AMD, which is coming off a difficult first quarter, when it reported a $580m loss, had been expected to report steady financials for its second quarter. However the firm revised its three per cent revenue growth forecast and now says it will post an 11 per cent decline in revenue from the previous quarter, which equates to a 10 per cent drop from the same period a year previously.

According to AMD its reversal in fortunes is down to weak sales in China and Europe, with OEMs buying fewer chips from the firm. However the company did have good news of sorts, claiming its operating expenses for the second quarter would be eight per cent less than it previously thought, meaning that some of the revenue loss will be offset.

Although AMD announced its second generation Trinity Fusion processors months ago, it was nothing more than a paper launch, with desktop parts still months away, but most importantly laptops are still not on the shelves. While AMD is waiting for its very capable Fusion chips to be slotted into laptops, Intel's marketing department has been on overdrive generating hype over ultrabooks and getting its partners to launch a number of desirable machines.

AMD said it will announce second quarter financial results on 19 July, two days after Intel. µ


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