AMD warns of up to 25% profit drop
Comment | Print | Email to a Friend | Font Size: AADespite statements to the contrary earlier in the quarter AMD has now issued a warning that its revenue will be lower than expected.
The warning states a possible 25% drop in revenue due to the slow market. This includes a comment that AMD is missing out on the netbook market due to a lack of participation in that segment.
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On Dec. 4 the chipmaker drastically cut its sales outlook, saying fourth-quarter revenue will drop about 25% from the third quarter's $1.59 billion.
AMD blamed a cratering in demand for chips used in personal computers and servers, the machines that run corporate networks. The company cited "weaker-than-expected demand across all geographies and businesses, particularly in the consumer market." The company is scheduled to report quarterly earnings on Jan. 22. Its warning comes three weeks after a similarly dire outlook from rival Intel (INTC), which cut the low end of its revenue forecast by $1.4 billion on Nov. 12 (BusinessWeek.com, 11/12/08).
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