AMD's second quarter results to disappoint
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.