AMD joins Intel with disappointing Q2 results
its second quarter financial results today, and like Intel's, its results have turned out below expectations.
Revenue was $1.22 billion in the second quarter, down from an expected
$1.3 billion and the previous quarter quarter's $1.33 billion. While
Intel hit an almost three-year low, AMD has actually climbed overall
since last year, when it posted second quarter revenue of $0.80 billion
(excluding its memory division, which has split from the company.)
Similarly, AMD's operating income saw a year-over-year rise, even though
it sunk from the previous quarter's $259 million to $109 million.
AMD also enjoyed 56.8% margins, a 1.2% year-over-year drop but still a
step above Intel's reported 52.1%. Margins could shrink for AMD if it
ends up implementing the drastic price
cuts that leaked out earlier this week, though. Intel is in the same
boat with a barrage of rumored price cuts
that could explain the 1-5% margin drop the company
expects for the third quarter. Despite possible cuts, though, both AMD
and Intel expect revenue to increase in the third quarter.