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AMD Revenues Drop 11%

AMD’s in the soup again, raising worries about how Intel will fare in the current macro environment

AMD’s in the soup again, raising worries about how Intel will fare in the current macro environment.

After Wall Street closed Monday it pre-announced its Q2 results and said it expects revenues to be down 11% sequentially to about $1.41 billion.

As a result its stock price dropped nearly 10% to $5.06 after-hours.

The company thought revenues would come in flat to up 3%.

It blames business conditions that materialized late in the quarter, to wit, softer-than-expected channel sales in China and Europe and weaker consumer PC demand impacting its OEM business (those peaky tablets again).

Operating expenses should down be about 8% less than prior guidance of approximately $605 million, a fact attributed to tighter controls, and it said its gross margin should be in line with guidance.

AMD reports July 19.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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