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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (43417)	7/6/2006 9:29:23 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68581

AMD to miss revenue target By Tom Krazit Staff Writer, CNET News.com Published: July 6, 2006, 5:25 PM PDT Last modified: July 6, 2006, 5:50 PM PDT TalkBack E-mail Print update Advanced Micro Devices announced its second-quarter revenue figures ahead of schedule on Thursday, and investors are not going to be pleasantly surprised. AMD's revenue for the second quarter is expected to be $1.21 billion, a 52 percent increase compared with the same period last year. However, analysts had been expecting AMD to record $1.3 billion in revenue, according to estimates polled by Thomson First Call. When AMD reported its first-quarter results in April, it said it expected second-quarter revenue to be flat to slightly down, in line with normal seasonal expectations. But $1.21 billion in revenue is a 9 percent decrease compared with the first quarter. Some analysts had fretted about AMD's performance in the face of a price war on Intel's part, as the larger chip company desperately tried to cut inventory ahead of the launch of its new Core architecture chips. AMD said sales of entry-level and mainstream processors for desktops and notebooks were down, the same categories that Intel targeted with its price cuts. In other news: New ways to skin medical tech Open-source transitions gather steam Google gets booked, and banned News.com Extra: Google's Microsoft syndrome Video: Fries with that video game? But the PC market, after years of solid gains, might also be finally coming back down to earth, said Dean McCarron, an analyst with Mercury Research. PC shipments grew 13.1 percent in the first quarter, but growth is expected to slow to around 10 percent later this year. The second quarter is always the slowest quarter of the year for the PC industry, but the typical decline for Intel and AMD is around two to four percent compared to the first quarter, McCarron said. AMD also tends to feel the effects of a slowdown in consumer purchases more than Intel, which has a disproportionately larger share of the corporate PC market, he said. AMD's server business, however, continued to post strong sales during the second quarter, the company said. Opteron processor shipments set a record during the quarter, AMD said. AMD will officially report earnings on July 20. An AMD representative declined to comment ahead of the official results. [Harry: We need to start to look for secondary confirming signals that this is more that a company specific issue. I would gather that this is more of an industry wide problem. Demand is muted as there are very few compelling reasons to upgrade. Most business also have plenty of power on their older laptops and probably will not be the first in line upgrade applications given the chaning nature of way software is now sold. Subscriptions are just a non-start with most companies.]