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AMD Surprises With Revenue Warning

By - Source: AMD | B 45 comments

AMD has told investors that its second quarter revenue will be much lower than previously anticipated.

Just when the company had freed itself from an exclusivity contract and improved the supply situation of its 32 nm processors, AMD has announced that consumer demand in China and Europe has weakened.

Compared to a forecast that saw second quarter revenue to remain at least flat or climb by up to 6 percent sequentially, the company cautioned investors on Monday that revenues will be about 11 percent lower than in the first quarter of this year. For Q1, AMD reported revenue of $1.59 billion. A decline of 11 percent would translate into a drop of more than $170 million into the neighborhood of $1.41 billion.

On a positive note, AMD said that operating expenses have been improved by about 8 percent compared to the previous guidance of $605 million, which would result in about $557 million and take AMD below the Q1 operating expenses of $598 million. The company did not say if it will be able to report a profit for Q2.

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Top Comments
  • 22 Hide
    alextheblue , July 11, 2012 3:42 AM
    hotroderxI am starting to wonder if maybe AMD should look at selling off ATI and just going back to strictly CPU manufacturing. Correct me if I am wrong but seems they where doing really really good (top of the market) before they purchased ATI.
    They're stronger with a graphics division. Their slide in the CPU-only market was inevitable. They really woke Intel up, back in the K8 days. Unfortunetely, all that really meant was that a motivated/threatened Intel dumped huge amounts of cash into R&D and leveraged their increasingly-superior fabs to outclass AMD - at least in the high end.

    No, without their graphics division, they'd be dead meat. Not only are their discrete GPUs doing decently, but their latest APUs are actually competitive in low to mid range systems. Graphics is the only thing they really do better than Intel. If they continue to push GPU compute, and put GCN in their 3rd-gen APUs, they should be able to do decent across the board. Unfortunetely, they'll have to continue to fight tooth and nail, in the meantime.

    Also, I definitely agree with you regarding pricing. AMD keeps Intel in check. If AMD really gets in trouble they might have to start looking at a merger/sale scenario, and I'm sure Intel will make any such move into some kind of legal circus.
  • 22 Hide
    alidan , July 11, 2012 3:23 AM
    ZannyI think that spinning off Global Foundries might be the downfall of AMD. They sold it to stay a float when they bought ATI, and while buying ATI was a good move, losing their manufacturing arm made them.. sic.. just like ARM, except they don't own the instruction set they design chips for.


    think of 5 years out. intel tried, they did, to have a stand alone gpu years ago and failed.
    amd im betting saw the cpu+gpu working in tandem being a solution for the future.

    the cpu side of computing is more or less as good as it needs to be, even if a cpu doubled or trippled its power, it would do what? cut a 90 second operation that needs to be once into a 30 second operation? what programs require a top end intel cpu otherwise they feel sluggish?

    the hdd to sdd is one thing that makes a computer feel faster
    going from a phenom II x4 to an i7, while would be faster, wouldn't feel faster by much.
    however, look at cpu alone operations compared to gpu assisted operations.
    what a amd does in 10 minutes, intel does in 5, but any gpu does in 1.

    point being that the future is gpu+cpu in tandem, and intel wont be ready when it happens, amd will.

    sorry if my point doesnt come across well
  • 21 Hide
    hijaxhfx , July 11, 2012 4:08 AM
    Intel having a Monopoly if AMD goes down is a scary thing
Other Comments
    Display all 45 comments.
  • 14 Hide
    deadlockedworld , July 11, 2012 3:05 AM
    "operating expenses have been approved"

    something doesn't seem right here ...
  • -2 Hide
    notlim981 , July 11, 2012 3:13 AM
    it's the global crysis... see what I just did there? :p 
  • 22 Hide
    alidan , July 11, 2012 3:23 AM
    ZannyI think that spinning off Global Foundries might be the downfall of AMD. They sold it to stay a float when they bought ATI, and while buying ATI was a good move, losing their manufacturing arm made them.. sic.. just like ARM, except they don't own the instruction set they design chips for.


    think of 5 years out. intel tried, they did, to have a stand alone gpu years ago and failed.
    amd im betting saw the cpu+gpu working in tandem being a solution for the future.

    the cpu side of computing is more or less as good as it needs to be, even if a cpu doubled or trippled its power, it would do what? cut a 90 second operation that needs to be once into a 30 second operation? what programs require a top end intel cpu otherwise they feel sluggish?

    the hdd to sdd is one thing that makes a computer feel faster
    going from a phenom II x4 to an i7, while would be faster, wouldn't feel faster by much.
    however, look at cpu alone operations compared to gpu assisted operations.
    what a amd does in 10 minutes, intel does in 5, but any gpu does in 1.

    point being that the future is gpu+cpu in tandem, and intel wont be ready when it happens, amd will.

    sorry if my point doesnt come across well
  • -7 Hide
    hotroderx , July 11, 2012 3:29 AM
    oops double post
  • 22 Hide
    alextheblue , July 11, 2012 3:42 AM
    hotroderxI am starting to wonder if maybe AMD should look at selling off ATI and just going back to strictly CPU manufacturing. Correct me if I am wrong but seems they where doing really really good (top of the market) before they purchased ATI.
    They're stronger with a graphics division. Their slide in the CPU-only market was inevitable. They really woke Intel up, back in the K8 days. Unfortunetely, all that really meant was that a motivated/threatened Intel dumped huge amounts of cash into R&D and leveraged their increasingly-superior fabs to outclass AMD - at least in the high end.

    No, without their graphics division, they'd be dead meat. Not only are their discrete GPUs doing decently, but their latest APUs are actually competitive in low to mid range systems. Graphics is the only thing they really do better than Intel. If they continue to push GPU compute, and put GCN in their 3rd-gen APUs, they should be able to do decent across the board. Unfortunetely, they'll have to continue to fight tooth and nail, in the meantime.

    Also, I definitely agree with you regarding pricing. AMD keeps Intel in check. If AMD really gets in trouble they might have to start looking at a merger/sale scenario, and I'm sure Intel will make any such move into some kind of legal circus.
  • 11 Hide
    amuffin , July 11, 2012 3:50 AM
    They're stock price just dropped 10% last night.

    GL AMD.
  • 8 Hide
    dj1001 , July 11, 2012 3:53 AM
    I really hope AMD doesn't go under, their E and C series apus stomp all over intel's atom platform. What I would like to see is AMD bring the APU platform into the mobile market ie. phones and tablets.
  • 21 Hide
    hijaxhfx , July 11, 2012 4:08 AM
    Intel having a Monopoly if AMD goes down is a scary thing
  • 7 Hide
    buzznut , July 11, 2012 4:57 AM
    I thought perhaps this article was vague enough to bring the idiots out, but this is simply amazing.
  • 3 Hide
    DjEaZy , July 11, 2012 5:06 AM
    ... donno why, but here in Latvia we don't get so many AMD products... i would like top-of-the-line laptop with latest'n'gratest APU from AMD...
  • 3 Hide
    bin1127 , July 11, 2012 5:34 AM
    Even Intel stock fell a bit, but AMD dove and made a big splash today.
  • 4 Hide
    Maximus_Delta , July 11, 2012 6:12 AM
    After releasing stellar products, especially the 7970, the demise of AMD is hard to fathom.
  • -8 Hide
    ta152h , July 11, 2012 6:33 AM
    I'm not sure what's a better investment, burning my wallet or keeping AMD stock. Not only did I lose money on them, they brought my other stocks down with them. What was I thinking when I bought this stock???
  • -8 Hide
    drbendanillo , July 11, 2012 6:35 AM
    if NVIDIA was bought by AMD(AMD chooses ATI when NVIDIA demanded more for a buy out) then AMD might be in success right now.
  • 1 Hide
    silverblue , July 11, 2012 6:44 AM
    SA seemed to believe AMD may have been undercut by either Intel or NVIDIA (more than likely the former) and that we'll see it in their figures soon enough.

    Also, didn't AMD have a massive GPU order recently? I suppose that wouldn't go in these figures; shocking if it did.
  • -3 Hide
    drbendanillo , July 11, 2012 6:49 AM
    IF AMD is able to create a CPU that uses the GPU's shaders to calculate an x86 coded FP instruction (Not OpenCL) then it would be a high performance CPU.They should build a shader that is fast enough to compute FP instruction like on the CPU's FPU.

    Piledriver is :(  because they did not prioritize the Floating Point Units.
    OpenCL is great but.....it only applies to parallel compute algorithms, serial compute is not as fast as it is runned on generic way.
  • 0 Hide
    silverblue , July 11, 2012 7:10 AM
    We don't really know much about Piledriver, but I guess you're right; there's no real sign of a boost to FP calculation speed besides the higher clock speeds.

    Sadly, fatter cores with faster cache and a ring bus just look to be what'll rule the CPU world for some time to come. :( 
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