AMD today updated its first quarter outlook. The firm says sales are lower than expected across all business segments and announced it will fire about 10 percent of its workforce by the end of the third quarter of 2008.
AMD (NYSE:AMD) today announced that it expects revenue for the first quarter ended March 29, 2008 to be approximately $1.5 billion, a 22 percent increase compared to the first quarter of 2007, and down 15 percent compared to the fourth quarter of 2007. The decrease is due to lower than expected sales across all business segments. AMD had previously anticipated first quarter revenue to decline in line with seasonality.
In addition, AMD announced plans to adjust its cost structure by reducing its workforce by approximately 10 percent by the end of the third quarter of 2008. As a result of these reductions, AMD expects to record a restructuring charge in the second quarter of 2008. At the time of this release, AMD is unable to determine the estimated amount of the charge as the details are still being finalized.
AMD will report first quarter 2008 results after market close on April 17, 2008. AMD will hold a conference call on this day for the financial community at 2:00 p.m. PT to discuss first quarter results.