AMD: Third-quarter revenue will be lower than expected

After a disappointing second quarter, AMD was looking forward to revenue going "up seasonally" in the third quarter. It wasn’t meant to be. The chipmaker broke the news yesterday, saying Q3 revenue will in fact be down 1-4% compared to the previous quarter.

Considering AMD posted revenue of $1.65 billion in Q2, that would put the Q3 results down in the $1.58-1.63 billion range. The Associated Press says that’s well below the $1.71 billion analysts were expecting. However, it’d still be an increase over the $1.4 billion or so AMD posted for the same quarter a year back.

As companies are wont to do when announcing bad news, AMD has provided a terse explanation. This quarter’s results will be down because of "weaker than expected demand, particularly in the consumer notebook market in Western Europe and North America," it says.

That explanation doesn’t seem like a cop-out, because Intel also warned on its third-quarter results last month… and cited the exact same reason: "weaker than expected demand for consumer PCs in mature markets." Good thing the recession ended last year, right?

Comments closed
    • sschaem
    • 9 years ago

    Could it be that people are putting of purchases of HW because Intel and AMD are both about to release they latest superior architectures?

      • Duck
      • 9 years ago

      Yep

      • blastdoor
      • 9 years ago

      I doubt it. Most people don’t know or care about that sort of thing.

        • Duck
        • 9 years ago

        Revenue is down as little as 1% as per the article.

        Lots of people have a tech person they ask what to do too don’t forget.

    • just brew it!
    • 9 years ago

    Guess it’s tough to make money when you’re practically giving away quad core CPUs. Great for the end user over the near term, but not so good for AMD’s future financial health…

      • OneArmedScissor
      • 9 years ago

      Oh, come on now. I don’t recall Intel comitting financial suicide when they were slapping two 65nm dual-cores together to make their $200 quad-cores. It made them lots of die hard fans, too.

      Intel has been “giving away” Pentium dual-cores at even lower prices for about four years and makes a killing from them. They’re far and away the vast majority of even *[

        • flip-mode
        • 9 years ago

        The X6 is way huger than any i7 but sells for less than any of them. I’d say that AMD hates having to sell silicon at the price / mm^2 that they have to.

          • OneArmedScissor
          • 9 years ago

          That’s both wrong and irrelevant to the point.

          $200-300 Phenom II X6: 346mm2

          $200-300 Core i5/i7: 296mm2

          Bigger? Slightly. Enough to kill their profit margins? Hell no. You are outright ignoring R&D, marketing, and the base costs of manufacturing, packaging, and shipping that apply from $30 to $1,000+ chips.

          AMD just took their year old Opterons, repurposed them for desktops, set them loose, and waited to see what would happen. They sold better than expected.

          Neither company sells very many CPUs in those price ranges. Intel’s percentage of all shipped Lynnfield and Bloomfield chips combined is 1-2%.

            • NeelyCam
            • 9 years ago

            l[

        • just brew it!
        • 9 years ago

        The difference is that Intel also has a lot of other higher-priced chips that they have a much bigger margin on. They can afford to cut prices in the low- to mid-range to really put the squeeze on AMD, since they’re still making money on the high end.

        If AMD doesn’t execute flawlessly on their roadmap, we could see a return to something like the situation back in the K6-x days, where they’re relegated mainly to the budget segment.

          • Farting Bob
          • 9 years ago

          Intel dont make more than a small percentage of their revenue on high end chips. Sure they have big fat margins but they sell an order of magnittude more low and mid ranged chips. If those arent making a profit (same in AMDs case) then the company will lose money.

            • just brew it!
            • 9 years ago

            I disagree. I would be willing to bet that a big chunk of their /[

            • OneArmedScissor
            • 9 years ago

            AMD also has high-markup server chips, equal in “inflated” prices to Intel’s, and they’ve been selling more 12 core chips than anything else, which cost more per core than the other models.

            That wasn’t what you were talking about when you first brought this up.

    • BoBzeBuilder
    • 9 years ago

    The recession is over. This is the new way of life, get used to it.

    • tejas84
    • 9 years ago

    Here come the AMD fanboys to defend their company’s poor results…

      • Jigar
      • 9 years ago

      You don’t seem one… Get off now.

      • khands
      • 9 years ago

      Trolling troll trolls trolling troll troll troll troll trolls troll troll…

    • sweatshopking
    • 9 years ago

    lol. recession over. it’s not a simple fix. this current economy isn’t any more sustainable than my love life.

      • dpaus
      • 9 years ago

      I didn’t realize things were /[<*[

        • sweatshopking
        • 9 years ago

        they’re pretty bad.

          • flip-mode
          • 9 years ago

          Have you been on Springer yet? If not, things could be worse.

            • NeelyCam
            • 9 years ago

            She could be your transvestite cousin

    • poulpy
    • 9 years ago

    q[https://techreport.com/discussions.x/19279<]§ Year to Year AMD: - increased revenue from $1.1 to $1.6 billion - reduced net income loss from -$330 to -$43 million - increased margins from 37% to 45% The loss is q[<"equity loss related to GF"<]q, otherwise they'd have turn up a profit. I mean it's disappointing if you were expecting them to roll out a massive profit, otherwise it looks like a company on the road to profit and long term stability to me..

      • djgandy
      • 9 years ago

      Every time AMD report earnings there is some form of charge.

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