Feeds

AMD posts $157m loss, will lay off 15% of workers this quarter

They said it was going to be bad, and they were right

Designing a Defense for Mobile Applications

One week ago, AMD warned investors that its financial results for its third quarter of 2012 were going to be worse than it had previously estimated, with revenues down about 10 per cent from the previous quarter rather than the 1 per cent, plus or minus 3 per cent, that they had forecasted earlier.

They were spot on – not that being correct about such a disappointing result will win them many friends on the Street.

After the markets closed this Thursday, AMD announced that its Q3 2012 revenues were $1.27bn, which hit that prediction of a 10 per cent quarter-to-quarter slippage.

That $1.27bn revenue figure, however, came in at the low end of the predictions made by 28 analysts surveyed by Yahoo! Finance. Those moneymen had guessed calculated that revenues would come in somewhere between $1.27bn and $1.4bn, with the consensus estimate being $1.28bn.

The same worthies had predicted that AMD would lose 15¢ per share, with the least optimistic prediction being -34¢ and the most optimistic, -1¢. AMD wasn't even close to the consensus, however – it lost 21¢ per share in the quarter. In the year-ago third quarter, AMD had earned a positive 15¢ per share.

Overall, AMD's income was a negative $157m for the quarter, a steep drop from a positive $37m in the previous quarter and $97m in the same quarter last year.

Echoing remarks made by Intel president and CEO Paul Otellini when his company announced disappointing results for its Q3 2012 this Tuesday, AMD president and CEO Rory Read cited the ongoing transition through which the chipmakers are currently struggling.

"The PC industry is going through a period of very significant change that is impacting both the ecosystem and AMD," Read said in a statement. "It is clear that the trends we knew would re-shape the industry are happening at a much faster pace than we anticipated."

Those trends are not only reshaping the industry, but AMD's workforce as well. In addition to announcing its financial results, AMD revealed that it will reduce its global workforce by about 15 per cent during the current quarter. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.