Revenue Expected to Decrease Approximately 11 Percent Sequentially; Company Effectively Manages Gross Margin
SUNNYVALE, CA, Jul 09, 2012 (MARKETWIRE via COMTEX) --AMD (NYSE: AMD) today announced that revenue for the second quarter
ended June 30, 2012 is expected to decrease approximately 11 percent
sequentially. The company previously forecasted second quarter 2012
revenue to increase 3 percent, plus or minus 3 percent sequentially.
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.
The company expects second quarter gross margin to be approximately
in line with prior guidance. Operating expenses for the second
quarter are expected to improve and to be approximately 8 percent
less than prior guidance of approximately $605 million, a result of
tightly controlled expenses in the quarter.
AMD will report second quarter 2012 results after market close on
Thursday, July 19, 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 second quarter financial results and to provide information
regarding expected third 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 (NYSE: 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 second quarter 2012 revenue, gross margin and
operating expenses, 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 March 31, 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
Email Contact
Investor Contact:
Ruth Cotter
408-749-3887
Email Contact
SOURCE: Advanced Micro Devices
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