EmailAdvanced Micro (AMD $5.13 -0.49) issued downside guidance for the second quarter with revenue to approximately 11% QoQ (from flat to +6% QoQ) to approximately $1.41 billion versus the $1.63 billion consensus Estimate.
The lower preliminary rev results are primarily due to business conditions that materialized late in Q2, specifically softer-than-expected channel sales in China and Europe as well as a weaker consumer buying environment impacting the co's Original Equipment Manufacturer business. The company expects second quarter gross margin to be ~in line with prior guidance. Operating expenses for the second quarter are expected to improve and to be approximately 8 percent less than prior guidance of approximately $605 million, a result of tightly controlled expenses in the quarter. The company will report in July 19.
