AMD sees Q2 revenue drop

Tough PC market takes its toll, but vendor is confident of hitting its year-end targets

AMD: Q2 2009 margin was disappointing

AMD has seen turnover slide during the second quarter 2009 but the processor and graphics card vendor is confident it will hit its targets for the rest of the year.

Compared with 2008’s $1.36bn (£830m) turnover, second quarter revenue dropped 13 per cent to $1.18bn. The company posted a net loss of $335m for the quarter compared with a net loss of $1.19bn in 2008.

Gross margin stood at 37 per cent in Q2, compared with 43 per cent in the first quarter of 2009.

Dirk Meyer, chief executive of AMD, said: “AMD successfully executed its product and technology roadmaps in the first half of the year, including introducing the six-core AMD Opteron processor months ahead of schedule.

“While we increased cash, exceeded our revenue plan and reduced operating expenses in Q2, gross margin was disappointing. New platform, microprocessor and graphics introductions planned for the second half of 2009 position us well to improve margins and meet our financial goals for the year,” he added.

Looking forward, the company said it expects revenue to be ‘up slightly’ for Q3.