AMD expects to report revenue of approximately $1.225 billion in the quarter ending March 31, 2007. AMD predicted $1.6-$1.7billion in the beginning of the year and the company had 1.33 billion in same period in 2006.

Revenues declined sharply quarter-over-quarter for the Computing Solutions segment, primarily due to lower overall average selling prices and significantly lower unit sales, especially in the resale channel.

AMD plans to restructure its business model to increase operational efficiencies and lower its operating cost structure. AMD will reduce 2007 capital expenditures by approximately $500 million, which the company believes will not materially impact capacity plans for the year. AMD will also significantly reduce discretionary expenses and limit hiring to critical positions. AMD will provide more details during its conference call to report first quarter 2007 financial results on April 19th.
More details in this AMD press-release.