Advanced Micro Devices (AMD) didn't give investors much reason to celebrate yesterday when announcing its second quarter financial results. The Sunnyvale chip designer reported revenue of $1.41 billion in Q2, which is representative of an 11 percent drop sequentially and a 10 percent decline year-over year. AMD pointed to a weak market as the reason why the numbers dropped the way they did.
"Overall weakness in the global economy, softer consumer spending and lower channel demand for our desktop processors in China and Europe made the closing weeks of the quarter challenging," said Rory Read, AMD president and CEO. "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."
While AMD remains "optimistic" about its "core businesses" and the ability of its Accelerated Processing Units (APUs) to compete in the market place, the company warned that Q3 is likely to see a 1 percent sequential drop in revenue, plus or minus 3 percent.
The numbers don't get any better when breaking things down by business segments. AMD's Computing Solutions business decreased 13 percent sequentially and year-over-year, a decline the chip designer blamed primarily on lower desktop channel sales in China and Europe, and AMD's graphics revenue "was down sequentially and remained flay year-over-year." GPU revenue dropped 5 percent in what AMD called a seasonally down quarter.