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AMD cuts revenue outlook for Q3

By | September 28, 2011, 2:18pm PDT

Summary: According to AMD, the weaker-than-expected sales in the third quarter are due to manufacturing issues at Globalfoundries.

AMD said that its third quarter revenue will be lighter than it expected and blamed its former manufacturing arm for the problems.

In a statement after market close, AMD said that it expects third quarter revenue to be up 4 to 6 percent in sequentially. AMD had said that its third quarter revenue would be up 10 percent give or take 2 percent relative to the second quarter.

AMD also said that its margin will be 44 percent to 45 percent, down from projections of 47 percent.

Wall Street was expecting AMD to report earnings of 18 cents a share on revenue of $1.72 billion. The revenue warning comes as AMD recently named a new CEO. Also see:

According to AMD, the weaker sales were due to manufacturing issues at Globalfoundries, which makes the company’s chip. AMD said there are shortages for its Llano chips. The company added that there are also “complexities” related to its 45nm chip supply.

Globalfoundries used to be the manufacturing arm of AMD. The chipmaker spun it off as an independent company.

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Revenue, Advanced Micro Devices Inc., Operational Accounting, Finance, Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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