AMD's second quarter results to disappoint

— 1:53 AM on July 7, 2006

In April, AMD announced good first quarter financial results but warned that second quarter sales would end up "flat to slightly down." If a new report by CNet is to be believed, this claim may turn out to be somewhat of an understatement. CNet says AMD expects revenue of $1.21 billion for the second quarter, 7% less than predicted by analysts and a whopping 9% below the previous quarter's $1.33 billion. For reference, the drop from last year's fourth quarter to this year's first was only 1.5%, and the usual drop between first and second quarters is 2-4%, according to Mercury Research Analyst Dean McCarron.

McCarron also tells CNet the PC market's slowing growth could be a factor in AMD's poor results. Indeed, worldwide PC shipments are expected to grow by only 10% this year, compared to 15.9% last year and 14.7% back in 2004.

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