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.
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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.