In a second revenue warning in as many months, chip manufacturer AMD says it expects its quarter one revenue to be around $1.23-billion, well down on original forecasts of between $1.6-billion and $1.7-billion.

The ongoing price war with arch-rival Intel and sluggish channel sales are said to be the prime reasons for the revenue drop.
In announcing the expected Q1 revenue figure, AMD also said it was embarking on a broad restructuring aimed at lowering its costs this year by $500-million. It was recently reported that the company had started cutting its workforce worldwide, with many former employees of the recently acquired ATI receiving retrenchment packages.
The restructuring is not expected to affect AMD's chip output and it is confident that the imminent release of its Barcelona processors will help it regain technological leadership, as well as securing additional market share from Intel.