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.