AMD (AMD) Sees Wider than Expected Drop in Q3 Revs
Tweet
Share
E-mailGet Alerts AMD Hot Sheet
Price: $514.39 +6.50%
Financial Fact:
Operating income: -293M
Today's EPS Names:
SVBT, ZEO, OTLK, More
Financial Fact:
Operating income: -293M
Today's EPS Names:
SVBT, ZEO, OTLK, More
Join SI Premium – FREE
Advanced Micro Devices, Inc. (NYSE: AMD) announced that revenue for the third quarter ended September 29, 2012 is expected to decrease approximately 10 percent sequentially. The company previously forecasted third quarter 2012 revenue to decrease 1 percent, plus or minus 3 percent, sequentially. The lower than anticipated preliminary revenue results are primarily due to weaker than expected demand across all product lines caused by the challenging macroeconomic environment.
The company now expects third quarter gross margin to be approximately 31 percent; less than the previous expectation of approximately 44 percent primarily due to an inventory write-down of approximately $100 million due to lower anticipated future demand for certain products. Third quarter gross margin was also negatively impacted by weaker than expected demand, which contributed to lower than anticipated average selling prices (ASPs) for the company's Computing Solutions Group products and lower than expected utilization of its back-end manufacturing facilities.
Operating expenses for the third quarter are expected to decline approximately 7 percent sequentially as a result of tightly controlled expenses in the quarter.
The company now expects third quarter gross margin to be approximately 31 percent; less than the previous expectation of approximately 44 percent primarily due to an inventory write-down of approximately $100 million due to lower anticipated future demand for certain products. Third quarter gross margin was also negatively impacted by weaker than expected demand, which contributed to lower than anticipated average selling prices (ASPs) for the company's Computing Solutions Group products and lower than expected utilization of its back-end manufacturing facilities.
Operating expenses for the third quarter are expected to decline approximately 7 percent sequentially as a result of tightly controlled expenses in the quarter.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- AMD (AMD) to offer senior notes in four parts
- Blackhawk Network (HAWK) Reports Q2 Loss of $0.07; Offers Guidance
- Kenon Holdings (KEN) halted, news pending
Create E-mail Alert Related Categories
Guidance, Hot Guidance, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
