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
- Final Fantasy 15 isn't completely open-world
- Nintendo admits it has to communicate better with the NX
- Open-source Piton CPU can scale into million-core system
- Steam allows No Man's Sky refunds regardless of playtime
- Halo 5 Forge needs 16GB of RAM for 4K at 60FPS on the PC
- GB's z170x G7's audio compared to G1's
- Overwatch Eichenwalde Map Preview
- 1833MHz memory in Asus PU551LA
- New Build - About to Press BUY
- Deus Ex: Mankind Divided Performance Analysis
- ADATA launches the ultimate SU800SATA 6Gb/s 3D NAND SSD
- CAPE Audio shakes up the headphone industry with the release of Rebellion Headphones
- Tesoro announces ambidextrous, White Sharur SE Spectrum gaming mouse
- Eurocom launches worlds first GTX 1080 SLI VR-Ready laptop
- Thermaltake new Pacific RGB G1/4 PETG Tube 16mm OD 12mm ID 6 liquid-cooling fittings with 1 RGB LED lighting controller