Last year AMD openly talked about the development of several 20-nm products, in May this year it was already about some more advanced process technology using FinFET-structure. Theoretically, this could be the 16-nm and 14-nm process technology, and AMD is not in hurry to make appropriate specification because it can affect relationships with contractors.
AMD company announced that revenue for the second quarter decreased by 8% instead of the previously expected 0-6%. Sluggishness of the computer market did not allow the company to sell the planned amount of hybrid processors .
Secondly, the rate of profit in the second quarter AMD will reach only 28% instead of the projected 32%. According to the company, this again is to blame lower demand for ready-made PCs and accessories. Built-in equipment, corporate solutions .
Finally, the main news is at the same time recognizing the need for AMD to write off $ 33 million. Because of the refusal to release several 20-nm products under development. To be precise, these products will be transferred to a more modern process technology with FinFET-structures and the costs of preparing for their release on 20-nm technology will have to be written off. What kind of products in question was not specified, if not called, and the timing of their appearance on the market in a new capacity.
Such news caused a decline in AMD share price by 14-16% and Exchange Commission for a time even had to remove them from auction. As a result, the share price reached a year low. Obviously now, investors and analysts will be looking forward to the quarterly report AMD, which will be released on 16 July. But before that, we will look at some of the quarterly reports of other companies, among which there will be NVIDIA .