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AMD Faces 32nm Challenge; Cuts Q3 Revenue Forecast

By - Source: AMD | B 38 comments

AMD reduced its revenue growth expectations for the third quarter by about 50 percent, stating that it has been affected by "manufacturing issues" at Globalfoundries.

The company said that it expects its revenue to climb by about 4 to 6 percent in the third quarter, which is down from a previous 10 percent sequential growth estimate. There is nothing wrong with demand; rather, it was manufacturing issues at Globalfoundries that impacted the yield of 32 nm Llano processors that are blamed for the revenue downfall.

The company also noted that 45 nm supply of Llano processors was less than expected, due to "complexities related to the use of common tools across both technology nodes." As a result, the shortage put AMD's average selling prices and margin under pressure.

In addition, AMD's 16-core Interlagos (Opteron 6200) server processor began shipping later than planned. Investors reacted almost immediately and sent AMD's stock down more 15 percent to $5.20. AMD's market capitalization dropped to just $3.59 billion.

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Top Comments
  • 25 Hide
    The Greater Good , September 30, 2011 6:38 AM
    For the love of God, AMD! Get it together! Smack some bitches at Globalfoundries.
  • 23 Hide
    iam2thecrowe , September 30, 2011 5:13 AM
    great, so they will release bulldozer and sell out on the first day because they don't have enough of them.
  • 13 Hide
    DjEaZy , September 30, 2011 5:10 AM
    ...i wanna Llano laptop... no wonder they are hard to find...
Other Comments
  • 5 Hide
    aftcomet , September 30, 2011 5:07 AM
    So now AMD is having the supply problem that Intel previously had this year?
  • 13 Hide
    DjEaZy , September 30, 2011 5:10 AM
    ...i wanna Llano laptop... no wonder they are hard to find...
  • 23 Hide
    iam2thecrowe , September 30, 2011 5:13 AM
    great, so they will release bulldozer and sell out on the first day because they don't have enough of them.
  • 25 Hide
    The Greater Good , September 30, 2011 6:38 AM
    For the love of God, AMD! Get it together! Smack some bitches at Globalfoundries.
  • -7 Hide
    darkguset , September 30, 2011 6:47 AM
    THe Interlagos have been out for some time now... how come we don't see enough benchmarks? Are people bored, they don't have any time or no one has bought any yet?
  • 0 Hide
    dragonsqrrl , September 30, 2011 7:31 AM
    darkgusetTHe Interlagos have been out for some time now... how come we don't see enough benchmarks? Are people bored, they don't have any time or no one has bought any yet?

    ?... Interlagos hasn't launched yet, but from what I've heard it's taking priority over FX and Opteron 4200 series processors, so we should see them soon.
  • -7 Hide
    jdwii , September 30, 2011 8:05 AM
    I want to see bulldozer i hope they will release in the middle of October like that guy from Amd said. I hate GF they suck if only Amd could use TSMC for their dozer's then they could also be made in 28nm die. We would of seen the bulldozer back in june if it was not for GF.
  • 3 Hide
    SteelCity1981 , September 30, 2011 9:22 AM
    Quote:
    You, you made me log in just to reply to you.


    Maybe you should have stayed logged off after that rant.
  • -1 Hide
    alyoshka , September 30, 2011 10:45 AM
    Looks like the prices are going to go up :( 
  • 0 Hide
    silverblue , September 30, 2011 10:57 AM
    Hiniberus1) Architectural problems, we're actually getting B1 stepping because B0 had some problems which was the June date.


    We're actually getting B2s, with another stepping due early next year.
  • 1 Hide
    eddieroolz , September 30, 2011 10:59 AM
    This is not looking good for AMD at all. Bulldozer is delayed (presumably due to this as well) and Llano isn't turning up in expected quantities. AMD needs a way to get out of this downward spiral.
  • 0 Hide
    stingstang , September 30, 2011 12:10 PM
    Forecasting an increase so little can only mean that they're not going to have bulldozer released this quarter..
    And yea, amd. Investors don't like having to wait longer than expected for their processors. Under-promise and over-deliver. (although that might be even worse with your releases)
  • 2 Hide
    madjimms , September 30, 2011 12:29 PM
    I find it rather stupid how investors drop stocks when the slightest problem arises. If they were smart they would invest MORE so the company could have more money to FIX the problem & have better success later down the line.

    AMD stock advise from ME:

    Buy low, keep the stock.
  • 2 Hide
    jestersage , September 30, 2011 12:52 PM
    1. buy amd stock now
    2. buy amd q4 hardware in february after the holiday rush
  • 0 Hide
    torque79 , September 30, 2011 12:54 PM
    If I had some spare money I'd consider investing in AMD. Given it's a big risk, but I feel they're on the brink of either huge growth or a huge drop based on how well their APU's work out primarily. If GF holds them back it doesn't matter how good the product is though.

    Any semi-informed computer salesman knows that Llano is the way to go selling a laptop to anyone wanting to do even a little casual gaming. If they had managed to keep up supply they could have made a killing for the back to school crowd, but it's probably too late for that by now.
  • 3 Hide
    fazers_on_stun , September 30, 2011 1:00 PM
    Quote:
    So now AMD is having the supply problem that Intel previously had this year?


    Actually Intel's 'supply problem' was in chipsets, and they were not in short supply - just some percentage with SATA 3 ports not working. However, Intel did announce the problem early, and fixed it in what - 5 weeks?

    AMD's 'supply problem' has been going on for a year now with LLano, and AMD waits until 2 days before the end of this fiscal quarter to announce (I guess they fear some sort of stockholder lawsuit?). GF cannot supply enough working CPUs for Llano, which in turn pushes back Bulldozer.

    This is one of the disadvantages of selling off your fabs and having to rely on a foundry that has other customers to serve, and apparently did not devote enough resources to fixing AMD's order..
  • 2 Hide
    southernshark , September 30, 2011 1:01 PM
    dragonsqrrl?... Interlagos hasn't launched yet, but from what I've heard it's taking priority over FX and Opteron 4200 series processors, so we should see them soon.



    Not yet, it will fall further before its done. A 50 percent drop in revenues is a terrible sign. Other companies may permanently eclipse them in the lower end market, especially with Windows 8 running on ARM next year.
  • 0 Hide
    fazers_on_stun , September 30, 2011 1:02 PM
    Quote:
    Quote:
    AMD's stock down more 15 percent


    Time to buy Shares ?


    LOL - exactly what I was thinking. However it would be nice to get some insider info on how well Bulldozer will do - the stock will move up or down accordingly. Where's JF when we need him?? :D 
  • 0 Hide
    fazers_on_stun , September 30, 2011 1:12 PM
    Quote:
    I want to see bulldozer i hope they will release in the middle of October like that guy from Amd said. I hate GF they suck if only Amd could use TSMC for their dozer's then they could also be made in 28nm die. We would of seen the bulldozer back in june if it was not for GF.


    Saw an article on some other site that R7000 got pushed back to next year as well - so GF's and TSMC's 28nm is a bit behind schedule too, I guess.
  • 1 Hide
    iamtheking123 , September 30, 2011 1:20 PM
    And Intel continues to extend the lead in front of AMD....

    Wasn't BD supposed to be released this month? Oh well, what's another delay when they've already had 30 of them.
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