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That tablets like Apple’s (NASDAQ:AAPL) iPad are putting increasing pressure on personal computer sales is no new fact. On Friday, Advanced Micro Devices (NYSE:AMD) again displayed just how cool PC sales have been lately in what is also a weak global economy by reporting poor second-quarter results.
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AMD reported a second-quarter profit of $37 million, or 5 cents a share, down from a year-earlier profit of $61 million, or 8 cents a share. Analysts had forecast earnings of 7 cents a share. Excluding legal settlement charges and other items, the company reported income of 6 cents a share, down from 9 cents a year ago. Revenue fell 10 percent to $1.41 billion, and its computing business revenue was down 13 percent from the first quarter.
“Clearly our performance in the quarter was disappointing and did not meet our commitments,” AMD chief executive Rory Read said in a statement. Read said business slowed largely due to weak desktop processor sales in China and Europe as well as a softer consumer PC market that hurt notebook processor sales.
The company forecast third-quarter revenue to be up 2 percent to down 4 percent sequentially, putting results at about $1.36 billion to $1.44 billion. Analysts had projected sales of about $1.5 billion. Earlier this week, rival Intel (NASDAQ:INTC) had also cut its guidance for full-year revenue.
PC makers like Hewlett-Packard (NYSE:HPQ) have also blamed their poor quarterly reports on weak consumer demand. Chip makers as well as PC manufacturers are hoping to gain some lost ground later in the year when Microsoft (NASDAQ:MSFT) launches its touch-capable operating system, Windows 8.
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