The results are below the initial guidance.
The company reported revenue for the first quarter. It had previously said it expected revenue of $6 billion. The company said that its non- GAAP gross margin is expected to come in around 50%.
The shares fell after hours.
The shortfall was caused by a weak than expected PC market and inventory correction actions across the PC supply chain.
The forecast for Q3 was lower than the analysts had expected.
The company said that its Client segment revenue was down 40% from a year ago. The data center business generated about $1.6 billion in sales for the quarter, up 45% from a year ago.
The boost in its Embedded business was the result of the acquisition of Xilinx.
Sales were up 29% over the third quarter but down 15% from the last quarter.
The stock is down more than 50% for the year while the S&P 500 is down more than 20%.
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