AMD recovering from manufacturing problems
AMD forecast higher fourth-quarter revenue as it recovers from a manufacturing setback that pinched the supply of its new PC processors.
AMD said it was working with manufacturing partner GlobalFoundries to resolve the problem affecting its new 32 nanometer Llano chips as well as older 45 nanometer chips.
“We are already seeing steady improvement day after day, week after week, but we are not out of the woods yet,” recently appointed chief executive Rory Read told analysts on a conference call.
That progress helped the company give a forecast for current-quarter revenue that beat most analysts’ expectations, even as AMD faces a shaky economy and weak consumer demand.
We are already seeing steady improvement day after day, week after week, but we are not out of the woods yet
AMD does not expect a shortage of hard drives caused by recent flooding in Thailand to impact the PC supply chain and hurt business in the current quarter, chief financial officer Thomas Seifert said on the call.
AMD said revenue in the third quarter rose 4% from the year ago period, to $1.69 billion. AMD predicted revenue in the fourth quarter ending in December would rise 3% compared to the previous quarter, plus or minus two points, equivalent to $1.71 billion to $1.77 billion.
The company reported a net profit of $97 million, after a year ago loss of $118 million.