AMD warns of significant dip in Q4 earnings

AMD has issued an earnings warning for the fourth quarter due to lower microprocessor prices

Tumbling microprocessor prices have prompted AMD to warn of a dip in earnings ahead of its fourth-quarter results at the end of the month.

The chipmaker expected fourth-quarter operating income to be positive but substantially lower than in the third quarter, it said last week.

The company, which gave no figure, reported operating income of $US119 million in the third quarter.

AMD attributed the dip in earnings to a sharp drop in prices for PC processors, which largely offset a significant increase in unit sales.

For the fourth quarter, which ended on December 31, AMD expects revenue, excluding its recent acquisition of ATI Technologies, to increase 3 per cent from the $US1.33 billion reported in the third quarter.

Analysts had been expecting AMD to report fourth-quarter revenue of $US1.85 billion and earnings per share of $US0.23, according to Thomson Financial.

AMD, which will report its fourth-quarter results on January 23, has been taking semiconductor market share away from rival, Intel, in the last year with new dual-core processors, forcing Intel into a defensive posture.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Blau

IDG News Service
Show Comments

Essentials

Brother MFC-L3745CDW Colour Laser Multifunction

Learn more >

Mobile

Exec

Sony WH-1000XM4 Wireless Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?