AMD: Sales aren't up to snuff

AMD: Sales aren't up to snuff

Summary: Advanced Micro Devices' said it isn't likely to meet its first quarter sales projection. In a statement, AMD said CEO Hector Ruiz will discuss that the company "is unlikely to meet its previously estimated revenue guidance of $1.

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TOPICS: Processors
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Advanced Micro Devices' said it isn't likely to meet its first quarter sales projection.

In a statement, AMD said CEO Hector Ruiz will discuss that the company "is unlikely to meet its previously estimated revenue guidance of $1.6 to $1.7 billion for the first quarter of 2007 as well as provide a product and technology outlook."

According to Thomson Financial AMD is expected to report first quarter sales of $1.66 billion and a loss of 25 cents a share.

Ruiz's presentation will be Webcast on AMD's site at 10:30 a.m PT and 1:30 p.m. ET.

So why is AMD struggling? A few reasons: Intel latest products are hurting AMD's and its pricing. Perhaps AMD's Vista systems sales aren't coming in as expected. With any luck Ruiz will provide more color.

More AMD-related reading:

Topic: Processors

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  • Profits in the entire industry are down

    I'm sure you have all read that CompUSA is closing half of their stores, Circuit City will close almost 100 stores this year, Dell and HP have seen their unit sales slide. Even popular computer periodicals like PC Magazine and PC World, continue to shrink in number of pages as are industry trade magazines like Infoworld and eWeek. Weakness in the industry as a whole are reflected in AMDs bottom line.

    It's hard to identify the cause of this slowdown. It could be leading edge of an economic recession (that's what Alan Greenspan is saying) or it could be other less obvious things at work.

    This morning a colleague mentioned to me that the amount of money that the American taxpayer will spend on the war in Iraq this year could buy a brand new desktop PC for every man, woman and child in the US.
    WiredGuy
    • Harumph!

      The economy is fine, actually. The housing bloat was due to burst, and I believe there is a new wave of buyers who just refused to buy at the inflated prices that they would have been gouged at. I'm one of them. When prices get reasonable again...we're back in the market. In general, consumer activity remains strong - and that is 2/3 of the GDP. Inflation remains in check as well, though the Fed is always keeping an eye on it. Job growth has been good overall.

      As for your colleague's statement...it may just be that we need the war more than new PCs. I'm kinda grateful that we've got some leadership who will do what they think is needed for our security, no matter which way the polls blow. There are people out there who want "death to America"...and the sooner Americans realize that we did *not* create them, the better for our long-term survival prospects.
      Techboy_z