Feeds

AMD's Q1 revenue goes missing

Cost structure and large bunny blamed

Intelligent flash storage arrays

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
All aboard the Poo Bus! Ding ding, route Number Two departing
Only another three days of pooing and I can have a ride!
Ford's B-Max: Fiesta-based runaround that goes THUNK
... when you close the slidey doors, that is ...
Official: European members prefer to fondle Apple iPads
Only 7 of 50 parliamentarians plump for Samsung Galaxy S
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Space Commanders rebel as Elite:Dangerous kills offline mode
Frontier cops an epic kicking in its own forums ahead of December revival
Nexus 7 fandroids tell of salty taste after sucking on Google's Lollipop
Web giant looking into why version 5.0 of Android is crippling older slabs
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.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.