AMD Posts Quarterly Loss of $1.4 Billion
AMD, one of the worlds largest designers and manufacturers of processors, motherboards, and graphics cards, is reporting a loss for the ninth consecutive quarter.
According to a press release from the company's investor relations department, AMD posted a USD $1.424 billion loss for the quarter. The rather lefty loss translates to roughly $2.34 a share. Compared to the same quarter one year previous which had a loss of nearly $1.8 billion, AMD is performing better, but still in the red.
For the fiscal year 2008 (which ended on December 27th, 2008), AMD's revenue stands at $5.808 billion, while the net loss was $3.098 billion. The numbers are an overall improvement over the fiscal year 2007, which had revenue of $5.858 billion and a net loss of $3.379 billion for fiscal 2007. As part of the reports breakdown, AMD called $684 million of its debt "ATI impairment of goodwill and acquired intangible assets." The ATI clause comes from the acquisition of ATI made by AMD back in 2006.
“Although industry visibility is poor, our priorities remain clear and achievable,” said president and CEO Dirk Meyer. “We remain focused on further reducing our break even point through targeted restructuring actions while ensuring we execute our highly-competitive product and technology roadmaps."
A major part of AMD's restructuring was the company split announced earlier this year, which sees the R&D remain under AMD while manufacturing becomes its own entity call The Foundry Company. "We made significant progress toward the creation of ‘The Foundry Company’ in the quarter, and anticipate closing the transaction in February," said Meyer. We expect our ongoing restructuring actions and asset smart strategy, combined with the strength of our innovative product offerings, will leave us well positioned for a global market recovery.”
While many consider AMD to be trailing behind Intel in several sectors, its main rival is also seeing tough times. Intel saw its Q4 profits drop 90%, and announced it would be closing four plants worldwide. The closures will "affect" at least 5,000 employees.