Thursday, September 29th 2011
AMD Announces Preliminary Third Quarter Results
AMD (NYSE: AMD) today announced that revenue for the third quarter ending Oct. 1, 2011 is expected to increase four to six percent as compared to the second quarter of 2011. The company previously forecasted third quarter 2011 revenue to increase 10 percent, plus or minus two percent, from the second quarter of 2011.
In addition, AMD expects third quarter gross margin to be approximately 44 to 45 percent. The company previously forecasted third quarter 2011 gross margin to be approximately 47 percent.
The less-than-forecasted preliminary third quarter 2011 revenue results are primarily due to 32 nanometer (nm) yield, ramp and manufacturing issues at GLOBALFOUNDRIES in its Dresden, Germany factory that limited supply of "Llano". Additionally, 45nm supply was less than expected due to complexities related to the use of common tools across both technology nodes. AMD continues to work closely with its key partner GLOBALFOUNDRIES to improve 32nm yield performance in order to satisfy strong demand for AMD products.
The less-than-forecasted preliminary third quarter 2011 gross margin results are primarily due to less-than-expected supply of "Llano" and associated products with higher average selling price (ASP). Additionally, shipments of AMD's next-generation server processor, codenamed "Interlagos", occurred later in the third quarter than originally anticipated.
AMD will report third quarter 2011 results after market close on Thursday, Oct. 27, 2011. AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) that day to discuss third quarter financial results and to provide information regarding expected fourth quarter results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page at http://www.amd.com. The webcast will be available for 10 days after the conference call.
In addition, AMD expects third quarter gross margin to be approximately 44 to 45 percent. The company previously forecasted third quarter 2011 gross margin to be approximately 47 percent.
The less-than-forecasted preliminary third quarter 2011 revenue results are primarily due to 32 nanometer (nm) yield, ramp and manufacturing issues at GLOBALFOUNDRIES in its Dresden, Germany factory that limited supply of "Llano". Additionally, 45nm supply was less than expected due to complexities related to the use of common tools across both technology nodes. AMD continues to work closely with its key partner GLOBALFOUNDRIES to improve 32nm yield performance in order to satisfy strong demand for AMD products.
The less-than-forecasted preliminary third quarter 2011 gross margin results are primarily due to less-than-expected supply of "Llano" and associated products with higher average selling price (ASP). Additionally, shipments of AMD's next-generation server processor, codenamed "Interlagos", occurred later in the third quarter than originally anticipated.
AMD will report third quarter 2011 results after market close on Thursday, Oct. 27, 2011. AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) that day to discuss third quarter financial results and to provide information regarding expected fourth quarter results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page at http://www.amd.com. The webcast will be available for 10 days after the conference call.
13 Comments on AMD Announces Preliminary Third Quarter Results
They simply were doing too much at once. Llano should have been pushed up a little more. I don't know about Interlagos, its market, etc. so I can't comment on that.
The big sales are to OEM's. How many delays, missed delivery dates/SKU's are the big laptop vendors going to let slide while the rest of their componentry sits around not producing revenue?
Given AMD's slipping schedules, over-enthusiastic forecasts, and GloFo's crappy yields, I'd think that OEM's especially will be hedging their bets on future orders and/or build in some stiff penalties for non-fulfillment of orders.I'm not sure that that sentiment is totally reassuring to the larger vendors, since individual consumers with demonstrably lesser financial investment are less than happy about AMD's CPU/APU availability
Don't see a hell of a lot of A8-3530MX lappies for sale at the moment (HP DV6-6124ca, DV6z-QE for example) - and if HP, Lenovo, Toshiba, Acer, Asus et al aren't getting them, then which OEM is?
There seems to be some availability for A8-3510, 3500...but I still wouldn't say it was by any means wide ranging.
I have options on AMD that expire in Jan. that look to be a complete loss at the moment. But if they can pull it together for Xmas, they might rock their 4th quarter. Would be interested in how well they are progressing with the 32nm issues.