AMD has updated its official outlook for the second quarter of this year and while the company already had a difficult first quarter it appears that the second quarter of 2015 will not be any better, despite the launch of Radeon Fury X.

According to AMD, low APU sales are to blame and AMD expects Q2 revenue to drop down by 8 percent sequentially. According to the same prediction, gross margin (non-GAAP) is expected to be at 28 percent, which is quite a drop from the expected 32 percent.

In the same report, AMD has also released an update for its plans to shift to 20nm manufacturing process. While AMD has previously announced that it will have 20nm ready in this year, it appears that this just won't happen as AMD will leave some of those APU design for 14nm/16nm FinFET manufacturing process.

AMD will also take a US $33 million charge on their GAAP gross margin for the work required to shift those designs from 20nm to 14/16nm FinFET manufacturing process.

The Q2 sales warning also had quite an impact on AMD's stock, which dropped down to $2.13, or a 13.8 percent drop from last night.

AMD is expected to reveal more details next week, during its Q2 earnings call.



Source: AMD.com.