AMD Q1 financial results to be worse than expected

Posted on Monday, Apr 09 2007 @ 17:20 CEST by Thomas De Maesschalck
AMD isn't doing too well this year. For the first quarter of 2007, AMD expects a revenue of only $1.225 billion - which is a lot less than the predicted $1.6-1.7 billion.

One of the biggest problems for AMD is the heavy competition from Intel which forces the chip maker to settle for lower margins. The average selling price of AMD processors dropped and retail unit sales were significantly lower than previous quarters.

AMD plans to restructure its business model to increase operational efficiencies and lower its operating cost structure. AMD will reduce 2007 capital expenditures by approximately $500 million, which the company believes will not materially impact capacity plans for the year. AMD will also significantly reduce discretionary expenses and limit hiring to critical positions. The company will provide more details during its conference call to report first quarter 2007 financial results on April 19.

AMD will report first quarter 2007 financial results after market close on April 19, 2007. AMD will hold a conference call for the financial community at 2:00 p.m. PT to discuss first quarter results.

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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