AMD Reports Its Financial Results for the Second Quarter

Advanced Micro Devices could have done better in the April-June period, but several factors ended up throwing a metaphorical wrench in its financial plans.

Like Intel, IBM and other IT players, Advanced Micro Devices has tallied its sales and expenses for the second three-month period of the year (April-June).

Those who read our report concerning the company's preliminary estimates probably know what to expect.

The Sunnyvale, California-based company does not, in fact, have the best of tidings to impart, despite its hopes at the start of April.

Granted, net income was a positive figure, but revenues fell both sequentially (compared to the first quarter) and on-year.

For those who want numbers, AMD's net income (what was left of the $77 million / €62.80 million operating income after expenses were deduced) was of $37 million / €30.17 million, corresponding to earnings per share of $0.05 / €0.04.

As for the revenue, it reached $1.41 billion / €1.14 billion, 10 percent lower than the one of 2Q11 and 11% power than during 1Q12.

Advanced Micro Devices holds several factors responsible for this outcome: lower channel demand for desktop processors in Europe and China, weaker consumer demand and overall weakness in the global economy.

That doesn't mean it's disheartened though. After all, this year will mark the end of life for some of its lesser accomplishments (Bulldozer) and the rise of strong Trinity desktop APUs. Only the impending demise of Phenom II has, thus far, proven a bit harder to accept for the populace.

"We are taking definitive steps to improve our performance and correct the issues within our control, as we expect headwinds will continue in the third quarter as the industry sets a new baseline," said Rory Read, AMD president and CEO.

"We remain optimistic about our core businesses as well as future opportunities with our competitively differentiated next-generation Accelerated Processor Units (APUs). Our recently launched Trinity APU continues to gain traction with customers. We are committed to driving profitable growth."

Via: AMD Reports Its Financial Results for the Second Quarter