AMD sets itself to breakeven at $1.5 billion but not at $1 billion!
After Intel three weeks ago, AMD is now feeling the pain of the global slowing demand for PCs.
The Sunnyvale, Calif., company has said today that is now expecting fourth-quarter revenues to come at about $1.1 billion, a 25% drop from the third quarter’s $1.585 billion.
The chip maker indicated that the decrease is due to weaker than expected demand across all geographies and businesses, particularly in the consumer market.
AMD’s breakeven point is at $1.5 billion not $1 billion!
The warning comes as a surprise because just a few weeks ago, at a meeting with Wall Street analysts at the company’s Sunnyvale, Calif., headquarters, AMD’s CFO, Bob Rivet, predicted the company will at least break-even this quarter with revenues in the range of $1.5 billion.
The $1 billion question now for AMD is where to cut next? It feels like the Silicon Valley company has cut costs and expenses as much as it possibly could and divested anything that was not directly related to the design and development of its core microprocessor and graphics chips.
[...] graphics maker ATI – on revenues of $1.16 billion, much lower than the company’s self-imposed breakeven point of $1.5 [...]
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