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Advanced Micro Devices on Thursday slashed its revenue expectations for the quarter that ended on September 29, 2012. The company blamed problematic macroeconomic environment for drop in demand for its products.

AMD said that revenue for the third quarter of fiscal 2012 is expected to decrease approximately 10% sequentially, which is around $1.270 billion. The company previously forecasted third quarter 2012 revenue to decrease 1%, plus or minus 3%, 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%; less than the previous expectation of approximately 44% 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% sequentially as a result of tightly controlled expenses in the quarter.

AMD will report third quarter 2012 results after market close on Thursday, October 18, 2012.

Tags: AMD, Business

Discussion

Comments currently: 23
Discussion started: 10/11/12 07:24:10 PM
Latest comment: 10/13/12 02:30:22 PM
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1. 
With products inferior to Intel and NVidia, only brainless newbies like Charlie D. would have expected to see AMD being profitable and competitive.
Exodus of top designers and managers, the last of which was CFO, clearly shows to outsiders what is going on inside AMD.
7 4 [Posted by: Azazel  | Date: 10/11/12 11:23:26 PM]
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2 9 [Posted by: beenthere  | Date: 10/12/12 07:05:22 AM]
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1 7 [Posted by: BestJinjo  | Date: 10/13/12 12:00:41 PM]
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2. 
AMD instead of blaming problematic macroeconomic environment should blame themselves and their weak product range:

- CPUs are not competitive at all

- APU Trinity is almost the same as 1 year old Liano and faces strong competition not only from Intel but from IPAD/Android tablets as well

- Brazos was not updated for 1 year and not much competitive now

- Only GPUs are still competitive

So I see the following ways of improving AMD revenues:

1. Move Low Power Brazos to SoC (System on Chip) design to reduce system cost, implement all the mobile functions which ARM SoCs have like camera support, NAND Flash, LPDDR2/3 support etc... Use Big-Small approach or aggressive core switching off when idle to dramatically increase system standby time.

2. Move Fusion APUs (Trinity etc...) to SoC design to reduce system cost, make Middle and High End SoCs with support for 4 channel high frequency DDR3/4 memory and > 800 GPU cores, allow GPU to use full or most of System RAM as Video Memory. These SoCs should have similar performance to Middle or High End Intel CPU+Nvidia/AMD Graphics Cards but total systems with SoCs will cost much lower and will become Hits in Sales and will dramatically increase AMD Revenues.
2 2 [Posted by: calzahe  | Date: 10/11/12 11:27:07 PM]
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2 9 [Posted by: beenthere  | Date: 10/12/12 07:26:56 AM]
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2 9 [Posted by: beenthere  | Date: 10/12/12 07:28:06 AM]
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2 9 [Posted by: beenthere  | Date: 10/12/12 07:31:36 AM]
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3. 
Advanced Micro Disappear
3 1 [Posted by: Tristan  | Date: 10/12/12 04:51:03 AM]
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2 8 [Posted by: beenthere  | Date: 10/12/12 07:14:17 AM]
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4. 
AMD to layoff up to 20% of workforce after recent earnings warning. http://www.reuters.com/ar...20121013?type=marketsNews

Careful beenthere. You are about to lose your job as a paid shill.
2 1 [Posted by: GreenChile  | Date: 10/12/12 05:42:47 PM]
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