2Q revenue declines for AMD

"In the first half of 2011, AMD brought to market the most competitive client offerings in our history, reinforcing our position as a design and innovation powerhouse," said Thomas Seifert, CFO and Interim CEO. "Today's computing experience is increasingly being defined by the ability to deliver brilliant multimedia and video content with all day battery life. Fusion APUs are ideal to meet this need, positioning AMD to gain unit market share in the mobile computing space." Quarterly summary -- Gross margin was 46%. -- Cash, cash equivalents and marketable securities balance at the end of the quarter was USD 1.86 billion. -- AMD's second quarter had 13 weeks of business compared to 14 weeks for the first quarter. -- Computing Solutions segment revenue was flat sequentially and year-over-year. Sequentially, higher mobile microprocessor revenues were offset by lower desktop and server revenue. The year-over-year decrease was primarily driven by lower server revenue. -- Operating income was USD142 million, compared with USD 100 million in Q1 11 and USD 128 million in Q2 10. -- Microprocessor ASP decreased sequentially and year-over-year. -- AMD launched the highly-anticipated AMD A-Series APU for client PCs combining a brilliant HD experience, supercomputer-like performance and all-day battery life for notebooks. -- The AMD A-Series APU has secured more than 150 notebook and desktop design wins across leading PC manufacturers including Acer, Asus, Dell, HP, Lenovo, Samsung and Toshiba. -- Acer and MSI introduced new tablets based on AMD's 2011 HD Tablet Platform and AMD Z-Series APU that enables outstanding video, graphics experience and content creation capabilities for Windows-based tablets. -- Dell, Cray and NexServe announced new AMD Opteron processor-based systems aimed at high-performance, compute-intensive workloads. Graphics segment revenue decreased 11% sequentially and 17% year-over-year. The sequential decrease was driven primarily by lower discrete mobile unit shipments and seasonality in the desktop discrete graphics add-in board market. The annual decrease was primarily driven by lower unit shipments. -- Operating loss was $7 million, compared with operating income of USD 19 million in Q1 11 and USD 33 million in Q2 10. -- GPU ASP was flat sequentially and year-over-year. -- Dell announced a new, ultra-high performance blade server powered by the AMD FirePro(TM) V7800P professional graphics. -- AMD extended its position as the graphics provider of choice for the game console market, where more than 140 million current-generation games consoles are powered by AMD graphics technology. Nintendo announced it selected AMD to provide the graphics technology for its next-generation Wii U(TM) System that will be available next year. Current Outlook AMD's outlook statements are based on current expectations. The following statements are forward looking, and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below. AMD expects revenue to increase 10 percent, plus or minus 2 percent, sequentially for the third quarter of 2011.