Feeds

AMD smacked by channel slump in Q2

Nearly 10 per cent drop

Protecting users from Firesheep and other Sidejacking attacks with SSL

The bean counters at AMD have done a first pass on the company's second quarter, and it is not looking so good.

The company said in a statement after Wall Street called it a day on Monday that revenues in the second quarter ended in June would fall by approximately 11 per cent sequentially from the first quarter.

AMD had previously told investors that sales would be somewhere between flat and up 6 per cent from the first quarter's sales, which hit $1.59bn and which declined by 1.7 per cent compared to the first quarter of 2011. (Technically, AMD said that it expected for overall sales to be up 3 per cent, plus or minus 3 per cent.)

"The lower preliminary revenue results are primarily due to business conditions that materialized late in the second quarter," AMD said in the statement, "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."

In the second quarter of 2011, AMD had $1.57bn in sales, down 5 per cent year-on-year, and a net income of $61m, much better than the $43m loss it had in the prior year. That 11 per cent sequential decrease puts revenues in Q2 2012 at around $1.41bn, which works out to a 9.9 per cent year-on-year decrease. The revenue drop, in terms of percentages against last year's figures, is accelerating as 2012 goes on.

The good news for AMD is that gross margins are anticipated to be in the same range as was expected with the higher revenues, and that due to tightly controlled spending, operating expenses are about 8 per cent lower than the expected $605m that had been planned. That's about $48m in lower expenses, and that could mean the bottom line doesn't take so much of a hit.

AMD did not talk about whether it would turn a profit in the quarter, and said only that more details about Q2 would be revealed during its conference call with analysts after the market closes on July 19. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.