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Advanced Micro Devices late on Thursday updated its quarterly guidance and said that instead of revenue increase, it would see sequential decrease of revenue. The company blamed slow sales of notebooks in mature markets for its problems.
AMD now expects revenue for the quarter ending September 25, 2010 to be in the range of down 1% - 4% as compared to revenue of $1.65 billion for the quarter ended June 26, 2010. The sequential decrease is due to weaker than expected demand, particularly in the consumer notebook market in Western Europe and North America.
Late last month Intel Corp., the larger rival of AMD, also decreased outlook for the third quarter also as a result of " weaker than expected demand for consumer PCs in mature markets".
"We continue to expect semis to grind lower despite the much anticipated cut to Q4, yet do believe PC exposed names are likely a relatively better place to hide for those that need to be invested in semis. We believe AMD and Intel management are still looking for growth in Q4, yet our checks suggest visibility remains low and business trends are still very soft," brokerage Jefferies & Co said in a note, reports International Business Times.
AMD will report third quarter 2010 results after market close on October 14, 2010.