AMD's second quarter is more than a little off target
Subject: General Tech | July 10, 2012 - 11:18 AM | Jeremy Hellstrom
Tagged: amd, quarterly earnings
While AMD predicted the second quarter of 2012 to be up 3 per cent, plus or minus 3 per cent compared to last quarter, total revenue instead fell by 11%. This is blamed on the slowed global economy, not just in North America but in other major markets like China and Europe, as opposed to a loss in market share to competitors. This is not the news AMD was hoping for but because at least some of the loss is due to a reduction in sales volume across the marketplace there is still hope for AMD to turn a profit because the gross margins may remain the same. Heavy cost reduction at AMD could make the difference in profitability in this economic downturn but that is not really a long term solution if they want to remain innovative and profitable. The Register has the acutal numbers handy here.
"The bean counters at AMD have done a first pass on the company's second quarter, and it is not looking so good.
The company said in a statement after Wall Street called it a day on Monday that revenues in the second quarter ended in June would fall by approximately 11 per cent sequentially from the first quarter."
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