AMD Warns!

From the Washington post:

SAN FRANCISCO (Reuters) - Microchip maker Advanced Micro Devices Inc. warned on Thursday that fourth quarter revenue would fall short of analysts' estimates and operating earnings would be substantially lower than in the third quarter, citing lower average prices for its chips.
AMD said that it now expects revenue in the fourth quarter to rise about 3 percent from the third quarter, implying revenue of about $1.37 billion.

In mid-October, Wall Street analysts, on average had projected fourth-quarter sales of $1.44 billion, which excluded revenue from graphics chip maker ATI, which AMD acquired later the same month.
It said fourth quarter operating income, excluding acquisition related charges and certain results from the purchase of ATI, "is expected to be positive but substantially lower than in the third quarter."
Shares of AMD, Intel Corp.'s smaller rival in the processor business, fell more than 2 percent in extended trade after the company issued a two-paragraph statement late in the day.

The scary bit is they're just talking about AMD revenue separately from ATI which we all know by know is increasingly losing money. AMD's profitability in 2007 is really questionable with nothing in sight to turn things around.

For those of you who doubted my predictions, don't worry. I'm not the type of guy that says "I told you so".

1 comment:

Anonymous said...

what prediction? It was a no brainer that AMD will go down this way after the benchmark blowouts.