AMD's Q2 weak, sees Q3 sluggish too

AMD's Q2 weak, sees Q3 sluggish too

Summary: AMD said third quarter revenue will be down 1 percent sequentially give or take 3 percent.

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AMD reported weak second quarter results and said that third quarter revenue is also likely to dip sequentially. However, AMD said it will take definitive steps to address its issues.

The chip maker, a distant No. 2 to Intel, reported second quarter earnings of $37 million, or 5 cents a share, on revenue of $1.41 billion, down from $1.57 billion a year ago. AMD had said that its second quarter would be week. Non-GAAP earnings were $46 million, or 6 cents a share.

In a statement, CEO Rory Read said AMD saw weak consumer spending and lower channel demand for its desktop processors in China and Europe. Read added:

We are taking definitive steps to improve our performance and correct the issues within our control as we expect headwinds will continue in the third quarter as the industry sets a new baseline.

As for the outlook, AMD said third quarter revenue will be down 1 percent sequentially give or take 3 percent. Intel also said the third quarter could be bumpy.

Related: AMD cuts revenue outlook due to China, EU, consumer weakness

Topics: Hardware, Processors, Tech Industry

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  • Guessing theres a bad Q4 and 2013 comign too. Intel was brilliant with

    marketing the ultrabook concept and oems not being able to call amd based models ultrabooks will take a toll. On the tech side I think the aggressive push to 22nm and 14nm will just widen the gap for intel.
    Johnny Vegas
  • AMD have nobody to blame but themselves...

    I've been using AMD in my new builds exclusively for going on 20 years, starting with the 80486 compatible chips. Until now the trade-off has been acceptable, at times even preferable (Athlon II vs. P4).

    When it comes to high performance computing, the new architecture CPUs being delivered (Bulldozer) have thus far been disappointing. And facing the probability of bent pins is a drawback too. Piledriver chips, to become available Q3, won't address that either AFAIK.

    Having taken part in AMD's marketing research prior to the release of this generation, it was apparent AMD knew Bulldozer chip performance was significantly behind Sandy Bridge i7 CPUs. Power consumption and die size also illustrate technological and engineering shortfalls.

    For the first time, I'm considering only Intel for high performance builds. The only reason to consider building with AMD is using mainstream oriented A-series APUs. Custom builders can't compete with mass manufacturers (HP, Acer, etc.) in that market segment.
    djchandler