AMD today announced that revenue for the third quarter ended September 29, 2012 is expected to decrease approximately 10 percent sequentially. The company previously forecasted third quarter 2012 revenue to decrease 1 percent, plus or minus 3 percent, sequentially. The lower than anticipated preliminary revenue results are primarily due to weaker than expected demand across all product lines caused by the challenging macroeconomic environment.
The company now expects third quarter gross margin to be approximately 31 percent; less than the previous expectation of approximately 44 percent primarily due to an inventory write-down of approximately $100 million due to lower anticipated future demand for certain products.
Third quarter gross margin was also negatively impacted by weaker than expected demand, which contributed to lower than anticipated average selling prices (ASPs) for the company's Computing Solutions Group products and lower than expected utilization of its back-end manufacturing facilities.
Operating expenses for the third quarter are expected to decline approximately 7 percent sequentially as a result of tightly controlled expenses in the quarter.
AMD will report third quarter 2012 results after market close on Thursday, October 18, 2012. AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) that day to discuss third quarter financial results and to provide information regarding expected fourth quarter results.
Latest News Posts
- Battlefield 5: Eastern Front rumors are reportedly fake
- Samsung 'Bedtime VR Stories' is a truly new way of telling stories
- First Call of Duty: Infinite Warfare trailer now live
- Without the reconstruction tech, Quantum Break looks incredible at 4K
- Forza Motorsport 6: Apex requires 16GB RAM for gaming at 4K 60FPS
- Sabertooth Z170 S - Accessory fan
- C2750D4I BMC Self Test Status Failure
- WD 1TB Black drive memory dump while Win 7 installed.
- Corsair K70 RGB RAPIDFIRE Mechanical Gaming Keyboard Review
- Creative Sound Blaster Roar Pro Bluetooth Portable Speaker Review
- ASRock and Intel teams up to create one of the smallest mini PCs: DeskMini
- Sapphire launches Radeon Pro Duo for ultimate VR & 4K experience
- Seagate now shipping 10TB helium enterprise drive in volume
- ENERMAX announces the new DFR technology with D.F.PRESSURE
- World's first 24/7 esports TV channel launched