AMD Plays Confusion Game (AMD)

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By Douglas A. McIntyre Updated Published
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Advanced Micro Devices Inc. (NYSE: AMD) has posted non-GAAP earnings of -$0.66 EPS (including -$0.04 impact) on revenues of $1.177 billion, flat sequentially and down some 21% year over year.  Estimates were -$0.66 EPS on $977.8 million in sales for the quarter.  AMD’s first quarter gross margin was 43%, but that includes a positive impact of 5% due to a $64 million benefit from the sale of inventory that was written down.

As far as guidance, this is very vague. The company is using “current macroeconomic conditions, limited visibility and historical seasonal patterns” to say that it sees product company revenue to be down for the second quarter of 2009.  We show estimates at $974.8 million, so that “lower revenue” is not any help considering its revenues were more than $1.1 billion.  This is not the first vague guidance from the company nor in its industry.

Shares closed down marginally at $3.30 today and the 52-week trading range is $1.62 to $7.98.  So far we see shares down almost 4% at $3.33 after the close.

JON C. OGG

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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