Feeds

AMD's Q1 revenue goes missing

Cost structure and large bunny blamed

Remote control for virtualized desktops

AMD has walloped investors with its second revenue warning in as many months.

The chip maker today revealed that it expects first quarter revenue to come in at $1.23bn. That's miles away from a onetime forecast of revenue between $1.6bn and $1.7bn. A price war with Intel and falling channel sales are both to blame for the first quarter whiff.

Last month, AMD warned that channel sales issues would impact Q1, which ended March 31. The company, however, declined to issue an exact revenue target.

Now it has tossed out the $1.23bn figure and some more news. AMD will engage in broad restructuring to lower 2007 costs by close to $500m.

AMD provided little detail on how it will rework its business model, but vowed the moves would not hurt its ability to crank out chips.

Not too long ago, AMD's soaring shares were closing in on the $45 mark. The company enjoyed a large technology lead over Intel in the server and PC markets and made the most of the edge by gobbling up market share.

In 2006, Intel roared back to life with a refreshed product line of its own. The giant has leveraged the better technology along with brutal pricing pressure in a bid to put AMD back in its place.

Investors today appeared pleased with AMD's cost-cutting promise. AMD's stock rose close to 4 per cent in early trading, hitting $13.34 at the time of this report. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
NOKIA - Not FINNished yet! BEHOLD the somewhat DULL MYSTERY DEVICE!
N1 mini-'slab to plop into crowded pond next year
The Nokia ENIGMA THING and its SECRET, TERRIBLE purpose
Finnish firm coyly exposes mystery product – and WE NO what it is
Heyyy! NICE e-bracelet you've got there ... SHAME if someone were to SUBPOENA it
Court pops open cans of worms and whup-ass in Fitbit case
SLURP! Flick your TONGUE around our LOLLIPOP – Google
Android 5 is coming – IF you're lucky enough to have the right gadget
Nokia's N1 fondleslab's HIDDEN BRILLIANCE: The 'Z Launcher'
Sugarcoating Android's Lollipop makes tab easier to swallow
Space Commanders rebel as Elite:Dangerous kills offline mode
Frontier cops an epic kicking in its own forums ahead of December revival
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.