AMD Cuts Q2 Outlook On Weaker Sales In China, Europe

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Shares of Advanced Micro Devices (AMD) were down nearly 6% after hours Monday, after the company said its second-quarter revenue would come in below expectations.

The company says it expects final results to show an 11% decline in sales from Q1, where analysts polled by Thomson Reuters had been expecting a nearly 3% sequential increase in revenue.

AMD cited "business conditions that materialized late in the second quarter" and "softer-than-expected channel sales in China and Europe as well as a weaker consumer buying." Here's its release.

The Sunnyvale, Calif.-based chipmaker is scheduled to report its Q2 results on July 19.

Consensus estimates of analysts polled by Thomson Reuters were expecting revenue of $1.63 billion, up 2.8% from Q1. An 11% sequential decline would mean revenue of about $1.41 billion.

AMD also said it expects its Q2 gross profit margin to be roughly in line with prior guidance, with operating expenses expected to be about 8% less than prior guidance of approximately $605 million.

AMD is the No. 2 maker of microprocessors that power computers, far behind leader Intel (INTC). Intel shares were down more than 1% after hours.

RELATED: Intel Mobile Unit Could Grow 50% In 2013.

Source: http://feedproxy.google.com/~r/InternetTechnologyRss/~3/OmsMoUEcQwE/AMD-says-q2-less-than-expected.htm

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