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

The chipmaker was hit with a triple whammy: Weak sales in China and Europe as well as dicey consumer sales.

AMD said its second quarter revenue will be down 11 percent from the first quarter, well below its previous outlook.

The chip maker had projected second quarter revenue to be up 3 percent to down 3 percent from the first quarter.

Wall Street was expecting AMD to report revenue for $1.63 billion. An 11 percent sequential revenue decline would put AMD revenue at $1.41 billion.

In a statement, AMD said the following:

The lower preliminary revenue results are primarily due to business conditions that materialized late in the second quarter, specifically softer-than-expected channel sales in China and Europe as well as a weaker consumer buying environment impacting the company's Original Equipment Manufacturer (OEM) business.

Analysts were expecting AMD to stumble given weaker PC sales.

Although AMD's revenue fell short, the company said gross margins will be in line with the second quarter guidance. Operating expenses will also come in about 8 percent lower than the $605 million projected.

Wall Street had been expecting second quarter earnings of 14 cents a share for AMD.