Chip designer AMD cuts Q3 revenue forecast

PanARMENIAN.Net - Chip designer AMD has cut its third quarter revenue and gross margin forecasts citing weak demand, The Inquirer reports.

AMD's lacklustre Bulldozer processor line has left the firm desperately trying to compete with Intel in the desktop market while its more impressive accelerated processor unit (APU) range has been rebuffed by Intel's multi-million dollar ultrabook marketing push. Now AMD has revised down its estimate of third quarter revenues, which it says will be around 10 percent lower than the previous quarter.

Even more worrying for AMD is its lower forecast for gross margin, the difference between selling an item and the cost to make it, down from 44 percent to 31 percent, The Inquirer says. Effectively AMD said its cost of doing business has risen considerably higher, although it laid most of the blame on a $100m inventory writedown.

AMD is scheduled to announce its third quarter 2012 financial results next week.