AMD forecasts first revenue drop in seven quarters, shares plummet

(Reuters) – Advanced Micro Devices Inc on Tuesday flagged competitive pressures with a forecast that pointed to the first revenue drop in seven quarters, sending the chipmaker’s shares plunging 11 percent in after-hours trading.

FILE PHOTO: AMD Opteron 6000 series processor is seen on a motherboard during a product launch in Taipei April 14, 2010. REUTERS/Pichi Chuang/File Photo

The company, which has gained from a surge in demand for its chips from cryptocurrency miners, also sought to tamp down expectations of benefits from the boom.

“We’re also predicting that there will be some leveling off of some of the cryptocurrency demand,” said Chief Executive Lisa Su on a post-earnings call.

AMD’s underwhelming forecast overshadowed a strong third-quarter performance, which was aided by a slew of launches this year such as the Epyc processors for servers and a new range of Ryzen desktop processors.

The company said it expects fourth-quarter revenue to fall about 12 percent to 18 percent from the third quarter. This implies a revenue of about $ 1.35 billion to $ 1.44 billion, according to Reuters calculation.

“AMD has headwinds with competition from Intel and Nvidia among other worries,” Daniel Ives, chief strategy officer at GBH Insights said.

Bigger rival Intel Corp recently launched its new line of Coffee Lake processors, which analysts said could challenge AMD’s Ryzen processors.

AMD’s total revenue surged 25.7 percent to $ 1.64 billion in the third quarter, beating analysts’ average estimate of $ 1.51 billion.

Sales in its graphics and computing business, which makes processors for servers and gaming consoles such as Microsoft Corp’s Xbox and Sony Corp’s PlayStation, surged 73.5 percent to $ 819 million.

“We anticipate seasonal demand to remain healthy as our customers enter the holiday sales cycle with Sony’s PlayStation 4 Pro and Microsoft’s Xbox One X,” Lisa Su said on the call.

France-based company Atari said last month that its latest gaming console Ataribox would feature AMD’s customised processor Radeon.

AMD reported a net income of $ 71 million, or 7 cents per share, in the quarter ended Sept. 30, compared with a loss of $ 406 million, or 50 cents per share, a year earlier.

Excluding items, the company earned 10 cents per share, topping analysts’ estimate of 8 cents, according Thomson Reuters I/B/E/S.

AMD’s shares have risen 25.7 percent this year, outperforming the S&P 500’s nearly 15 percent increase but underperfoming the Philadelphia semiconductor index’s 37 percent gain.

Reporting by Laharee Chatterjee in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila

Our Standards:The Thomson Reuters Trust Principles.

Tech

Couple Calls Cops Over Airbnb Hidden Camera. And It’s Not The First Time.

The host has been charged with video voyeurism.

A couple who stayed in a Florida Airbnb found hidden cameras that they reported to the police, leading to their host being charged with voyeurism.

Derek Starnes and his wife, who was not named in media reports, were visiting Longboat Key just over a month ago when Starnes spotted a camera hidden in the bedroom’s smoke detector. He determined the camera was recording to an SD card and called the cops.

When the police arrived, they seized multiple pieces of computer equipment. A second camera was in the living room. Starnes reckons the bedroom camera recorded him naked.

The landlord, a man named Wayne Natt, was arrested on Oct. 3 and, according to an Ars Technica report, charged with one count of video voyeurism. He claimed he was a swinger and had recorded dozens of videos of sexual activity on the property, but with the subjects’ knowledge.

Airbnb spokesman Benjamin Breit told WFLA that the firm was “outraged” at the reports and had banned Natt from the platform permanently.

“Our team has reached out to local law enforcement to aid them with their investigation of this egregious offense and we hope justice is served,” Breit said. “We take privacy issues extremely seriously and have a zero-tolerance policy against this behavior.”

This is hardly the first time Airbnb guests have discovered they were being filmed by hidden cameras. There are a few examples in just the last few months. A Korean couple traveling in Japan also found a camera hidden in a fire detector in July, then a month later a Chinese couple experienced the same thing in Taiwan.

The practice is so widespread that, at the end of 2015, a software developer even released a tool to help Airbnb guests spot hidden cameras that have a Wi-Fi connection.

Tech