AMD warns for lower profits - stock drops 11%

Posted on Friday, Jan 12 2007 @ 16:26 CET by Thomas De Maesschalck
AMD today announced its revenue and profits for the fourth quarter of 2006 will be lower than expected.

The processor firm says their revenue will be lower than expected because the average price of CPUs has dropped.

Analysts expect AMD will announce a revenue growth of 3% compared to Q3 2006, in which AMD had a revenue of $1.33 billion. Note: these numbers are without the revenue of ATI, which was recently acquired by AMD.

AMD's Q4 2006 financial results will be published on January 23, 2007. In the hours after this announcement, AMD's stock dropped more than 11%. At the moment of writing AMD's stock has dropped 11.69% from $20.18 to $17.82.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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Re: AMD warns for lower profits - stock drops 11%
by Anonymous on Friday, Jan 12 2007 @ 23:15 CET
Only -9.5% at the moment but still a pretty big loss for AMD. They need some more innotvation to beat Intel again but I think that could take a few more years. Intel's current lineup and the future models look pretty solid compared to what AMD has to offer.