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AMD (AMD) today announced that revenue for the third quarter
ended September 29, 2012 is expected to decrease approximately 10
percent sequentially. The company previously forecasted third quarter
2012 revenue to decrease 1 percent, plus or minus 3 percent,
sequentially. The lower than anticipated preliminary revenue results
are primarily due to weaker than expected demand across all product
lines caused by the challenging macroeconomic environment.
The company now expects third quarter gross margin to be
approximately 31 percent; less than the previous expectation of
approximately 44 percent primarily due to an inventory write-down of
approximately $100 million due to lower anticipated future demand for
certain products. Third quarter gross margin was also negatively
impacted by weaker than expected demand, which contributed to lower
than anticipated average selling prices (ASPs) for the company’s
Computing Solutions Group products and lower than expected
utilization of its back-end manufacturing facilities.
Operating expenses for the third quarter are expected to decline
approximately 7 percent sequentially as a result of tightly
controlled expenses in the quarter.
AMD will report third quarter 2012 results after market close on
Thursday, October 18, 2012. AMD will hold a conference call for the
financial community at 2:00 p.m. PT (5:00 p.m. ET) that day to
discuss third quarter financial results and to provide information
regarding expected fourth quarter results. AMD will provide a
real-time audio broadcast of the teleconference on the Investor
Relations page at http://www.amd.com. The webcast will be available
for 10 days after the conference call.
About AMD
AMD (AMD) is a semiconductor design innovator
leading the next era of vivid digital experiences with its
groundbreaking AMD Accelerated Processing Units (APUs) that power a
wide range of computing devices. AMD’s server computing products are
focused on driving industry-leading cloud computing and
virtualization environments. AMD’s superior graphics technologies are
found in a variety of solutions ranging from game consoles, PCs to
supercomputers. For more information, visit http://www.amd.com.
Cautionary Statement
This release contains forward-looking
statements concerning AMD and its anticipated third quarter 2012
revenue, gross margin, operating expenses, anticipated future demand
for certain products and inventory write-down, which are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
commonly identified by words such as "believes, "expects," "may,"
"will," "should," "seeks," "intends," "pro forma," "estimates,"
"anticipates," "plans," "projects," and other terms with similar
meaning. Investors are cautioned that the forward-looking statements
in this release are based on current beliefs, assumptions and
expectations, speak only as of the date of this release and involve
risks and uncertainties that could cause actual results to differ
materially from current expectations. Risks include the possibility
that Intel Corporation’s pricing, marketing and rebating programs,
product bundling, standard setting, new product introductions or
other activities may negatively impact the company’s plans; the
company may be unable to develop, launch and ramp new products and
technologies in the volumes that are required by the market at mature
yields on a timely basis; that the company’s third party foundry
suppliers will be unable to transition its products to advanced
manufacturing process technologies in a timely and effective way or
to manufacture the company’s products on a timely basis in sufficient
quantities and using competitive technologies; the company will be
unable to obtain sufficient manufacturing capacity or components to
meet demand for its products or will not fully utilize its commitment
with respect to GLOBALFOUNDRIES, Inc.’s microprocessor manufacturing
facilities in 2012 and beyond; that customers stop buying the
company’s products or materially reduce their operations or demand
for the company’s products; that the company may be unable to
maintain the level of investment in research and development that is
required to remain competitive; that there may be unexpected
variations in the market growth and demand for its products and
technologies in light of the product mix that the company may have
available at any particular time or a decline in demand; that the
company will require additional funding and may be unable to raise
sufficient capital on favorable terms, or at all; that global
business and economic conditions will not improve or will worsen;
that demand for computers will be lower than currently expected; and
the effect of political or economic instability, domestically or
internationally, on the company’s sales or supply chain. Investors
are urged to review in detail the risks and uncertainties in the
company’s Securities and Exchange Commission filings, including but
not limited to the Quarterly Report on Form 10-Q for the quarter
ended June 30, 2012.
AMD, the AMD Arrow logo, AMD Opteron, AMD Radeon, and combinations
thereof, and are trademarks of Advanced Micro Devices, Inc. Other
names are for informational purposes only and used to identify
companies and products and may be trademarks of their respective
owner.
Media Contact
Drew Prairie
512-602-4425
drew.prairie@amd.com
Investor Contact:
Ruth Cotter
408-749-3887
ruth.cotter@amd.com
SOURCE: Advanced Micro Devices
mailto:drew.prairie@amd.com
mailto:ruth.cotter@amd.com
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