AMD informed its investors that it won't be able to achieve its previously forecasted 8 to 12% percent rise in quarterly revenue due to Llano manufacturing issues at GlobalFoundries
The company announced that revenue for the third quarter ending Oct. 1, 2011 is expected to increase by 4 to 6% as compared to the second quarter of 2011. The company previously forecasted third quarter 2011 revenue to increase 1%, plus or minus 2%, from the second quarter of 2011.
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.
The company also revealed that shipments of AMD's next-generation server processor, codenamed "Interlagos", occurred later in the third quarter than originally anticipated.