What a surprise: AMD isn't going to be raking in as much cash as it thought this quarter. The company now expects Q4 2008 revenue to be 25% lower than the $1.585 billion it posted in the third quarter, which works out to around $1.189 billion.
For reference, AMD posted revenue of $1.770 billion for the fourth quarter of 2007. If my math is right, the new forecast amounts to a 32.8% year-over-year drop. We should point out two things, however: AMD sold its digital TV business to Broadcom in late October, and the chipmaker itself notes that the adjusted Q4 2008 forecast doesn't include revenue from process technology licensing.
Naturally, AMD blames "weaker than expected demand across all geographies and businesses" for the lower forecast. AMD has faulted the global economy for poor financial results in the past, and considering recent developments, this latest attribution sounds quite plausible. Intel similarly trimmed its revenue forecast for the fourth quarter, saying it expects to make $1.1 billion less than it originally planned.