We knew there were some constraints but not to the degree that it ended up manifesting itself in terms of revenues.

It appears AMD has engaged in a price war, where it is essentially bidding against itself.

It appears AMD has engaged in a price war, where it is essentially bidding against itself,

We are not changing our estimates today, but do expect to have to lower them again after the call -- both for the second and third quarter. Aggressive pricing and weak demand should mean mid-40 percent gross margins by the third quarter.

Margins and revenue were better than feared. Inventories did go up as we expected but they basically are not far off from where they were last year.

That would be an old dog learning new tricks. This is not a company or a management team that has been willing to admit they are making mistakes.