Jim Cramer Blog

Advanced Micro Devices Inc. Monday said its first quarter revenue will be about $1.23 billion, below the $1.33 billion posted a year ago and far below its original outlook of between $1.6 and $1.7 billion.

No. 2 chipmaker AMD (NYSE:AMD - News), based in Sunnyvale, and market leader Intel Corp. (NASDAQ:INTC - News), based in Santa Clara, have been involved in a brutal price war.
AMD said Monday it will reduce 2007 capital expenditures by about $500 million, but it doesn't expect that to materially impact capacity plans for the year. It also said it will significantly reduce discretionary expenses and limit hiring to critical positions.
AMD stock was up about 5 percent to $13.51 in afternoon trading.
For its part, Intel last September began a work force reduction of nearly 6,000 workers to 94,000. In January, Intel said it expects to reduce spending and manufacturing costs by about $2 billion.
Published April 9, 2007 by the Silicon Valley / San Jose Business Journal

Labels: Advanced Micro Devices Inc., AMD