The supplier of processors and graphic solutions by Advanced Micro Devices (AMD) announced the financial results of the third quarter. As indicated in the preliminary results of the company, AMD revenue decreased compared to the previous quarter by 10% to $ 1.27 billion, which is less than the same period last year by 25%.
The company’s operating losses amounted to $ 131 million (according to GAAP accounting standards), pure losses reached $ 157 million or $ 0.21 in terms of one stock. AMD explains the unsatisfactory work in the reporting quarter.
In connection with the decline in work efficiency and a deterioration in the financial condition, AMD announced the upcoming restructuring, which involves a reduction in personnel in the amount of 15% of the total number. As expected, the staff reduction will be completed in the fourth quarter of this year. In addition to dismissal, the company plans to consolidate production capacities. Thanks to the implementation of measures to improve the financial situation, the company hopes to reduce the costs of $ 20 million in the fourth quarter, and in 2013. cost savings should be $ 190 million.
In the fourth quarter of any cardinal changes for the better in AMD financial indicators, it is not expected. According to the company’s forecast, the revenue per quarter will decrease compared to the previous three months by 9% plus/minus 4%.
This means that AMD revenue in the fourth quarter will be about $ 1.1 billion, although experts, according to Bloomberg, expect about $ 1.31 billion revenue over the past three months of 2012.
Source:
- AMD.com