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Components | September 29, 2011

AMD: Problems with 'Llano' in Dresden facility

The less-than-forecasted preliminary 3Q/2011 revenue results are primarily due to 32 nanometer (nm) yield, ramp and manufacturing issues at Globalfoundries in its Dresden (Germany) factory that limited supply of 'Llano'.
AMD expects revenue for the 3Q (ending Oct. 1, 2011) to increase 4-6% as compared to the second quarter of 2011. The company previously forecasted 3Q/2011 revenue to increase 10% (plus or minus 2%), from the second quarter of 2011.

AMD continues to work closely with its key partner Globalfoundries to improve 32nm yield performance in order to satisfy strong demand for AMD products.
In addition, AMD expects third quarter gross margin to be approximately 44-45%. The company previously forecasted third quarter 2011 gross margin to be approximately 47%.

The less-than-forecasted preliminary third quarter 2011 revenue results are primarily due to 32 nanometer (nm) yield, ramp and manufacturing issues at Globalfoundries in its Dresden (Germany) factory that limited supply of Llano. Additionally, 45nm supply was less than expected due to complexities related to the use of common tools across both technology nodes.

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