AMD fesses up on future

While AMD had some seriously good results, the company is coming clean about its longer term prospects.

AMD forecasted stronger-than-expected revenue growth of 22 percent in the third quarter from the second. This was mostly due to finding new markets in game consoles to offset slowing sales of personal computers.

The fabless chip maker reported second-quarter revenue of $1.161 billion, down from $1.413 billion in the year-ago quarter. It said third-quarter revenue would rise 22 percent, plus or minus three percent, compared with the June quarter. Its gross margin hovered around 39 percent.

AMD chips are being put under the bonnet of Microsoft’s Xbox One and Sony’s PlayStatiom 4 .

It is a moot point if this will save AMD from suffering the hurt of the PC market being in the doledrums.

The problem that AMD faces is similar to that of Intel. The PC market is still troubled because people are simply too broke to replace their old machines.

Intel warned on Wednesday that it does not expect revenue to grow in 2013 due to the slowing PC industry.

But at the end of the day AMD is still posting a loss. In this case a net loss of $74 million compares with a profit of $37 million in the same quarter last year.

This is better than what most analysts predicted, and probably OK when you consider the slump in the PC market. But it is still an indication that AMD is hanging on and hoping the PC market will sort itself out.