AMD Cuts Revenue Expectations for the Quarter

AMD Expects Sales to Drop in Q2 2012

by Anton Shilov
07/09/2012 | 06:45 PM

Advanced Micro Devices on Monday announced that revenue for the second quarter ended June 30, 2012 is expected to decrease approximately 11% sequentially, or about $1.415 billion. Despite of the fact that the company started to sell new accelerated processing units (APUs) for different types of mobile computers, its revenues will be lower than expected due to slow sales of chips in China and Europe.


AMD previously forecasted second quarter 2012 revenue to increase 3%, plus or minus 3% sequentially.  The lower preliminary revenue results are primarily due to business conditions that materialized late in the second quarter, specifically softer-than-expected channel sales in China and Europe as well as a weaker consumer buying environment impacting the company's Original Equipment Manufacturer (OEM) business.

The company expects second quarter gross margin to be approximately in line with prior guidance. Operating expenses for the second quarter are expected to improve and to be approximately 8% less than prior guidance of approximately $605 million, a result of tightly controlled expenses in the quarter.

AMD will report second quarter 2012 results after market close on Thursday, July 19, 2012.