By Josh Beckerman
Advanced Micro Devices Inc. said it expects second-quarter
revenue will be lower than its previous guidance, citing weak
consumer PC demand.
The semiconductor company expects a sequential revenue decline
of about 8%, compared with prior guidance of a 3% decline, plus or
minus 3%.
In after-hours trading, AMD shares were down 12% to $2.18.
The money-losing semiconductor maker has been shifting its focus
recently, saying it would lose money through the first half of the
year but return to profitability in the second half as it attempts
to grab greater market share in select businesses where it believes
it can make a profit.
Sunnyvale, Calif.-based AMD is the longtime second-fiddle in
microprocessors to Intel Corp. The two companies use the same
fundamental design, known as x86, that powers nearly all PCs.
In April, AMD said its first-quarter loss widened as its revenue
slumped, to $1.03 billion, and the company said it would exit its
defense-server systems business.
AMD also said Monday that gross margin will be lower than
expected, in part due to a higher mix of Enterprise, Embedded and
Semi-Custom segment sales.
Chief Executive Lisa Su initiated cost-cutting moves shortly
after she took the company's helm in October. Early this year, Ms.
Su recruited several new senior managers while moving to retain
others.
AMD has managed to place chips in the latest game consoles from
Sony Corp. and Microsoft Corp. But its market share has dwindled in
chips for PCs and server systems.
Analysts polled by Thomson Reuters project a loss of 10 cents a
share for the quarter. AMD's revenue forecast issued in April was
below analysts' estimates of $1.13 billion at the time.
Write to Josh Beckerman at josh.beckerman@wsj.com
Access Investor Kit for Advanced Micro Devices, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0079031078
Access Investor Kit for Intel Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US4581401001
Subscribe to WSJ: http://online.wsj.com?mod=djnwires