FX168 Financial News (North America) - AMD's stock price plummeted 15% after hours, as the company did not provide an annual performance timetable and released a weak performance guidance.

On Tuesday, November 5th, AMD released its unaudited first-quarter performance. Due to lower-than-expected revenue and dim performance guidance, along with uncertainty about when the latest fiscal year's annual performance will be released, AMD's stock price fell by 15% in after-hours trading.

(Source: Google)

Last week, AMD's auditor Ernst & Young resigned, leading to a sharp decline in the company's stock price. The company faced accusations from activist investors, alleging accounting irregularities and transporting sensitive chips to sanctioned countries and companies in violation of export controls.

During Tuesday's analyst conference call, AMD stated they would not discuss issues related to Ernst & Young's resignation decision, nor address corporate governance issues. CEO Charles Liang stated they are actively searching for a new auditor.

If AMD fails to submit its annual report to the U.S. Securities and Exchange Commission by mid-November, it may face the risk of delisting from the Nasdaq. Since May of this year, the company has not released audited financial reports. Liang stated on the call: "We are working diligently to restore financial reporting to normalcy as soon as possible."

AMD expects quarterly net sales up to $5.9 billion to $6 billion as of September 30, lower than analysts' expectations of $6.45 billion, but a 181% increase year-on-year. The company's business has recently shown strong performance due to its servers adopting Nvidia's ai processors.

When asked whether sales would rebound if the relevant issues were resolved, or if the company had plans to increase senior management to improve financial reporting, Liang mentioned the latest nvidia GPU "Blackwell" and described the demand as strong. The product just started shipping in recent weeks.

When analysts asked when the revenue from Blackwell would be reflected in the financial report, Liang said, "We ask nvidia every day," and emphasized that the two companies will continue to work closely together.

Adjusted net income for this quarter is expected to be between 75 and 76 cents per share, in line with analysts' expectations compiled by the London Stock Exchange.

AMD's forecast for the December quarter is also below expectations. The company expects revenue to be between 5.5 billion and 6.1 billion US dollars, lower than the LSEG analysts' average expectation of 6.86 billion US dollars. Adjusted earnings per share are expected to be between 56 and 65 cents, while analysts expected 83 cents.

AMD stated that the board of directors has commissioned a special committee to investigate concerns raised by Ernst & Young. After a three-month investigation, the committee found no evidence of fraud or improper behavior by the management.

AMD said: "The committee recommended that the company take a series of remedial measures to strengthen internal governance and oversight functions, and plan to submit a full report this week or next." The company also stated that it will take all measures to maintain its listing on the nasdaq.

After rising by 87% in 2023, AMD's stock price surged by another 246% last year. The stock reached a peak of $118.81 after being included in the S&P 500 index in March. However, the company's market cap subsequently shrank by nearly 80%, evaporating over $55 billion in market cap.