View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
July 9, 1997updated 05 Sep 2016 12:10pm

AMD SECOND-QUARTER RESULTS WAY OFF TARGET

By CBR Staff Writer

Advanced Micro Devices reported second quarter numbers that missed Wall Street expectations by a mile. The Sunnyvale, California chipmaker weighed in with net income of $9.97m, or $0.07 per share when the First Call estimate, representing the conservative end of popular opinion, was more than triple that at $0.22. Some firms, such as Deutsche Morgan Grenfell, were looking for $0.26. The disparity in earnings and expectations, according to AMD, is largely due to the fact that analysts simply weren’t listening when the company warned that expenses as a percentage of revenues would be considerably high for the quarter, coming in at a hefty 62%. The shortfall is also a reflection of AMD’s rapid shift to newer products, namely the heralded K-6 MMX chip launched in April (CI No 3,132), and the resulting price decline for older products. Subpar performances by the Vantis programmable logic unit and the memory products group, whose combined revenues were essentially flat with the prior quarter and up only 8% from the year-ago quarter, didn’t help matters. In after-hours trading Tuesday, AMD shares fell to $37.75 from $39.125 just before the results were released and analysts are expecting a decline of as much as 10% on Wednesday. Revenue for the quarter increased 31% to $594.6m. For the year-ago quarter, AMD posted a net loss of $34.7m. Midterm net income was $22.9m, or $0.16 per share, on revenue up 14.7% at $1.15bn.

Content from our partners
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU