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AMD Lowers Q2 Guidance Due to Poor Sales Performance

Category: Manufacturers
Posted: 03:53AM
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AMD just cannot seem to catch a break when it comes to its own financial wellbeing. According to a press release recently published, AMD noted that investors should expect revenue to be down eight percent sequentially, which is two percent lower than its worst case scenario financial situation the chipmaker described in a conference call with financial analysts last April. As of right now, it is expected that AMD’s Q2 revenue will be roughly 34 percent lower than the same quarter last year. Additionally, AMD is now expecting its gross margin to be 28 percent, down from its 32 percent expectation that it previously set this year. Most of the blame regarding AMD’s poor results come from "weaker than expected consumer PC demand." While its enterprise, embedded, and semi-custom segment met company expectations, the computing and graphics reporting segment will take the largest losses. The Intel rival will also take a on a onetime charge of $33 million to transition some of its chip designs from the 20nm process to the latest FinFET node.

The lowered Q2 guidance announced by AMD pushed investors to sell a wealth of shares, and as a result, AMD’s share price dropped over 15 percent. AMD is expected to announce its Q2 2015 results on July 16.

Source: NASDAQ.com and The Register



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