AMD Reports Another Hefty Loss: $358 Million In Q1

AMD has reported the sixth quarterly loss in a row. Q1 turned out to be another rough period for the company, resulted in a $358 million loss (including $50 million of ATI-related charges) on $1.51 billion of sales. Since Q4 2006, AMD has reported a total loss of $4.3 billion.

The company warned of lower than expected revenue on April 7.

The Q1 revenue was 22-percent above the Q1 2007 result, but 15-percent below of Q4 2007. The loss dropped from $611 million in Q1 2007 and $1.77 billion in Q4, which included a $1.68 billion write-off due to the decreased value of the ATI acquisition.

"A seasonally weak first quarter was amplified by a challenging economic environment for consumers and lower than expected revenues of previous generation products, resulting in lower than expected revenues in all business segments," said chief financial officer Bob Rivet in a statement. "However, we are encouraged by the market acceptance of our quad-core AMD Opteron server processors as well as our new chipset and graphics offerings."

AMD is expected to beginning laying off 3-5% of its staff today.

4 Comments Comment from the forums

vherub

You wonder how much worse the company would be doing if the wii wasn't running on ati hardware?
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compy386

I don't think AMD even makes any money on the Wii. They lost money on consumer electronics which I believe includes Wii and Xbox 360.
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sailer

You wonder how much longer AMD will tolerate Hector. :kaola:

But a reality check. Now that the B3 Phenom/Barcelona is out, sales should go up for the next quarter, even with losses due to the recession. As to ATI's contribution, it is probably larger than first thought, as it not only produces graphics cards, but chipsets as well.
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frosty97

never really liked AMD whatsoever but competition heading in the dumps is NEVER a good thing. I in no way want intel to have a monopoly on the market. I hope AMD pulls through this!
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