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AMD lowers Q4 revenue expectations

Dawn Kawamoto CNET News

Published: 05 Dec 2008 09:55 GMT

AMD on Thursday warned that its fourth-quarter revenue will come in significantly lower than previously expected, due to weakness across all regions in all its businesses.

AMD shares were climbing back up in the morning, having dipped to as low as $1.92 (£1.30) just after the markets opened.

The chipmaker said on Thursday it expects to post revenue of $1.19bn in the quarter ending 27 December, excluding process technology licence revenue. That's 25 percent below its third-quarter performance.

When the company reported its third-quarter revenue of $1.59bn (excluding the process tech licence revenue) in October, AMD predicted its fourth-quarter revenue would be "roughly flat" that of the third quarter.

While AMD is still willing to issue a forecast for its fourth quarter, a number of companies that have released quarterly warnings since late October have indicated they are not willing to stick their necks out again in this uncertain climate.

SAP, for example, pulled its year-end forecast, after reporting third-quarter results. And Dell, when it reported its third-quarter results, declined to provide any guidance on how it expected the fourth quarter to shape up.

Credit: AMD issues fourth-quarter warning from CNET News