AMD Revenue Falls Amid Intel Pressure

AMD disclosed Thursday night that it expected to miss its revenue targets, a sign that Intel's moves to counter AMD's recent gains with lower prices may be having an effect. For the quarter, the company is expecting to post $1.21 billion in revenue, down nine percent from the first quarter.

In its first quarter results, AMD said it expected revenue to be flat or slightly down in the second quarter. Analysts agreed, expecting $1.3 billion in revenue. However, some feared that Intel's deep price cuts in early June might have hurt AMD's bottom line.

Sure enough, the categories where Intel dropped prices are where AMD's sales were weaker. "Sales of entry-level and mainstream mobile and desktop processors were down," the company said in a statement. But the lower sales figures could also be due to a slowing in the PC industry overall, some say.

In addition, the second quarter is traditionally the slowest quarter. Thus, Intel's price cuts may have been more of a compounding factor in AMD's worse than expected performance rather than the sole reason.

Even with its troubles in the consumer side of the business, AMD's single-, dual- and multi-socket Opteron processors continued to see strong demand, setting a record.

AMD was not commenting on the second quarter results ahead of their release on July 20.

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