AMD sees revenue below Wall Street view
Lower prices, lower unit sales took toll, prompting chipmaker to warn that revenue will be about 20 percent below forecasts.
Chipmaker Advanced Micro Devices said on Monday it expects to report first-quarter revenue of about $1.23 billion, well below Wall Street forecasts, and announced a restructuring to lower costs.
AMD said revenue declined sharply quarter-over-quarter for its computing solutions business, with lower prices and significantly lower unit sales.
The company said it plans to reduce 2007 capital expenditures by about $500 million, cut discretionary expenses and limit hiring to critical positions.
Analysts on average had expected AMD to report revenue of $1.54 billion, according to Reuters Estimates. The company is due to report financial results on April 19.