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AMD Falls Short Of Sales Targets In Q4 Of 2011

AMD, one of the largest chip-makers globally, didn’t have a very happy quarter to report when it came out with the details of it’s performance in the fourth quarter of 2011. According to the details released by the chip-maker, it fell short on nearly all sales targets. AMD reported a total revenue of $1.69 billion in the fourth quarter, although Wall Street was expecting it to come out with $1.71 billion. This marks a net loss of $177 million. According to AMD, this loss will translate into the next quarter, causing an 8 percent decline in Q1 of 2012.

Due to this present decline, AMD suffers a net loss of about 24 cents a share. This is markedly larger than AMD’s last year stock performance which was a loss of 19 cents a share. Had AMD met the target, it would have earned 16 cents a share but apparently, the chip-maker isn’t doing as well as we would have expected it to be.

According to AMD, the revenue is expected to ‘decrease eight percent, plus or minus three percent, sequentially for the first quarter of 2012.’ This puts the earnings proposed by AMD in the first quarter of 2012 to be at $1.56 billion whereas Wall Street was hoping for a $1.7 billion.

Clearly, with the focus of the tech-world shifting fast to alternative chips and chip-making technologies, conventional champions seems to be experiencing a slight set-back. If indeed AMD wishes to stay afloat and on top, it must improvise and create unique solutions for the next hot dog of the tech world, smartphones and tablets.

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