Tech Link (Industry): AMD: Blood In The Streets, Gross Margin At 31%

I have nothing to add, I'll just let AMD*'s CFO deliver the message, expand to read the WallSt source article.

“After more than three years of successfully executing our customer expansion strategy and significantly growing our unit and revenue base, our first quarter performance is disappointing and unacceptable,” said Robert J. Rivet, AMD’s chief financial officer

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AMD: Blood In The Streets, Gross Margin At 31%
AMD (AMD) rallied like a house afire, closing the regular session at $14.28. up 2.7% on over 50 million shares, about double its normal volume.

AMD reported revenue of $1.233 billion and a GAAP loss of $504 million. In the quarter a year ago, revenue was $1.33 billion and the company had a profit of $259 million.

Gross margins fell to an unbelieveable 31%. In the same quarter a year ago, they were 59%. In Q4 06, 40%.

The company expects the next quarter to be flat.

The company's cash dropped to $1.167 billion from $1.541 billion at the end of last year. Receiveables dropped from $1.14 billion to $667 million. Never a good sign.

Advanced Micro Devices was expected to report a loss of 48 cents per share for the first quarter. Analysts on average, expect AMD to report a 5 percent sales decline to $1.26 billion

The company this month forecast sales of $1.22 billion after last month saying it was unlikely to meet its previous target for sales of $1.6 billion to $1.7 billion.

Douglas A. McIntyre

Source:AMD: Blood In The Streets, Gross Margin At 31%