AMD shares drop as profits fall
Semiconductor heavyweight, Advanced Micro Devices, reports disappointing results and forecasts a bleak third-quarter outlook
Advanced Micro Devices shares have fallen 2.3%, following its announcement that profits for the second quarter of 2012 came in at $37million, or $0.05 per share, down from the $61million reported for the same time last year.
Revenues declined to $1.41 billion, from $1.57billion, last year, representing a 10% decrease year-over-year.
Meanwhile operating income stood at $77million for the quarterly same period, compared to $105million in the second quarter of 2011.
"Overall weakness in the global economy, softer consumer spending and lower channel demand for our desktop processors in China and Europe made the closing weeks of the quarter challenging," said Rory Read, AMD president and CEO. "We are taking definitive steps to improve our performance and correct the issues within our control as we expect headwinds will continue in the third quarter as the industry sets a new baseline."
AMD also expects revenues to decrease by 1%, plus or minus 3% in the next quarter.
"We remain optimistic about our core businesses as well as future opportunities with our competitively differentiated next-generation Accelerated Processor Units (APUs)," added Read. "Our recently launched Trinity APU continues to gain traction with customers, and we are committed to driving profitable growth."
