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
- Thronebreaker: The Witcher Tales fails at sales expectations
- Sunset Overdrive is coming to PC, available on November 16th
- SMITE Nintendo Switch release planned for November 16th
- Smash Bros. Ultimate/Pokemon: Let's Go to bump Switch sales
- Nintendo celebrate 1,000 games on Switch with new trailer
- G-Technology Mobile SSD R Series 1TB Review
- Asus 2-in-1 Q524UQ
- AMD Radeon RX 590 Review: The Refresh Of A Refresh Is Here
- Gigabyte Psu buzzing?
- Netgear Insight Business Storage and Networking Management
- Kolumno is now available on PC, mobile and Smart TVs
- Wolfalone Studio announces Darwin's Test!
- World's Top PUBG MOBILE Players Head to Dubai For PUBG MOBILE 'STAR CHALLENGE' Global Finals, Tickets On Sale NowWorld's Top PUBG MOBILE Players Head to Dubai For PUBG MOBILE 'STAR CHALLENGE' Global Finals, Tickets On Sale Now
- Nexon Secures Global Publishing Rights For Pokelabo, Square Enix-Developed SinoAlice
- Makeblock Announces Educational Partnership with Gratnells Storage Solutions