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