Though revenues grow, they still don't meet expectations

Oct 11, 2011 07:48 GMT  ·  By

During much of 2009 and 2010, TSMC had such poor 40nm chip yields that both AMD and NVIDIA suffered financially, what with undersupply of products, and it looks like something similar has happened on AMD's 32nm front, though a different party is responsible this time.

Since the month of October, 2011 is almost half-way through, financial reports for the third quarter are cropping up.

As it happens, Advanced Micro Devices just released its preliminary results.

Apparently, the Sunnyvale, California-based company doesn't have overmuch to brag about, even though, ultimately, finances went up.

AMD originally expected its revenues to grow by 10 percent during the July-September period, but this failed to occur.

Instead, the outfit is reporting a rise of four to six percent, an outcome which, apparently, is not its actual fault.

Indeed, as consumers may have guessed, manufacturing process yields are getting the blame again, though it is Globalfoundries that can't seem to deliver this time.

AMD's marketing performance hinged much on shipments of the mainstream Llano APUs (accelerated processing units).

These CPUs (central processing units) with DirectX 11-ready, Radeon HD 6000 integrated graphics, are made on the 32nm technology.

Globalfoundries hasn't seen the greatest of success, though this is just one of the causes behind the failure to meet guidance.

AMD also had to deal with fairly high average selling prices of Llano-associated products, plus delays to the Interlagos server processor shipments.

There is no info on what AMD expects from the fourth quarter, but the guidance should be given on October 27, 2011, when the conference call with financial analysts is set to take place.

Ultimately, revenue and profits will depend on the FX processors, like the 8-Core AMD FX-8120, which got benchmarked not long ago and should be released tomorrow (October 12, 2011). Go here to learn how to get your rig ready for the new series.