Advance Microsystems Devices (NYSE:AMD) revenue for the second quarter of 2012 plunged by 11 percent to $1.41 billion, due to weak consumer demand on PCs, sluggish global economy, and strong competition from Intel Corporation (NASDAQ:INTC).
According to AMD, the company’s poor performance was driven by the 13 percent decline in its Computing Solutions and Time Products business segments, due to weak consumer purchases in China and Europe, as well as lower ASPs respectively. Its revenue for its Graphic segment dropped by 4 percent, due to lower units shipments.
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Rory Read, president and CEO of AMD, said the company’s second quarter earnings result is disappointing, and it failed to meet its commitments. He said, the company’s main priority is its profitability and future growth.
Thomas Seifert, Chief Financial Officer of AMD, said the company will concentrate on recovering and stabilizing its performance in the second half of 2012. AMD will closely monitor, and ensure that its latest generation of products will gain market share. According to him, the company is ready to capitalize on Windows 8.
AMD reduced its third quarter expectation by one percent. Its shares fell by 0.61 percent to $4.86 per share after reporting its second quarter earnings.
On the other hand, Sandisk Corporation (Nasdaq:SNDK), also reported a disappointing revenue performance this quarter. The company reported a 25 percent revenue decline from $1.37 billion during the second quarter of 2011, to the current $1.03 billion, due to lower licensing sales and weaker margins.
The company reported a net profit of $13 million, or 5 cents per share. The result was too low compared with its $248.4 million, or $1.02 per share net profit during the same period the previous year, a decline of 94.8%.
Its earnings per share, excluding stock compensation, tax adjustments, and other items, decline from $1.14 to 21 cents.
Sanjay Mehrotam, president and chief executive officer of the Sandisk, said that the company’s second quarter result was in line with its expectations, due to short-term weaknesses in Mobile OEM sales, strength in international retail markets, growth in enterprise, and client SSD products.
In addition, she said, “I am pleased to report that our SSD revenues achieved 10% of the second quarter sales with the growing adoption of our solutions by major OEMs. We also made good progress on our embedded product roadmap for mobile customers. We believe that strengthening industry fundamentals, and our expanding portfolio of solutions will contribute to improving financial results in the second half of 2012.”
The company’s stock value rose by 2.39 percent to $35.08 per share in after-hours trading on Thursday.