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Due to weakening consumer demands, Advanced Micro Devices Inc. (AMD) warned today that its revenue is expected will drop by about 25%. Here is from CNN Money:
Chipmaker Advanced Micro Devices Inc. warned Thursday its fourth-quarter revenue will drop about 25% from third-quarter levels due to weaker-than-expected demand, particularly in the consumer market.
That implies sales of $1.19 billion, based on third-quarter revenue of $1.59 billion. Analysts polled by Thomson Reuters, on average, expect much higher sales of $1.54 billion.
AMD had been struggling long before the economy took a turn for the worst, losing $5.6 billion over the past eight quarters. Last month, AMD said it will cut 500 jobs, or about 3% of its global work force - the company's second big round of layoffs this year amid a huge restructuring.
Intel owns about 80% of the worldwide microprocessor market; AMD essentially has the rest.
Chip sales have been suffering as companies worldwide lay off workers, slash capital spending and delay IT upgrades. The Semiconductor Industry Association said global chip sales were down 2.4% in October from a year ago, mainly due to falling prices for memory chips. The SIA expects the worldwide financial crisis to continue to hold back demand for chips next year.
AMD will report fourth-quarter results after the market closes on Jan. 22, 2009.
Shares slipped 3 cents to $2.17, after earlier falling to as low as $1.92. The company has lost about 71% of its market value this year.
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Sources :
- CNN Money: AMD warns of 25% revenue drop, December 4, 2008: 10:52 AM ET
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