AMD backs forecast after Intel warns
Chipmaker Advanced Micro Devices stood firm on its financial forecast on Thursday, one day after Intel cut its fourth quarter revenue forecast by 14 percent, sparking fears about the PC industry, Reuters reported.
Shares of both companies, which make virtually all the microchip processors for computers, rose along with the broader market and AMD acting Chief Financial Officer Robert Rivet called the economic downturn "a storm that will pass".
"We will come out of it in a better economic position," he told an analysts' day gathering at the company's headquarters.
"We're not going to change our guidance," Rivet added, although he said AMD would update progress in December.
Nearly a month ago, AMD reported better-than-expected results and projected that fourth quarter revenue would be flat.
Rivet said that once AMD hives off its manufacturing arm early next year, it expected to cut its capital expenditures to $300 million from $800 million, and that in 2009 they would aim for gross revenues of 45 percent.
He said the company hopes for 2009 sales growth of 4 percent to 5 percent in units, assuming global Gross Domestic Product of 1.8 percent.
A Wall Street analyst who asked not to be identified said AMD was overly optimistic and that many of his colleagues believe PC growth will range from one to two percent growth to a small shrinkage of sales.
Intel had said demand was bad around the world and in all market segments.