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.
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Pei-chen AMD always lost more money then it made which doesn’t make any business sense. How can a company keep existing if it always loses money?Reply -
revolink24 The same way that our nation (America) survives. Loans, and spending more than you have while still selling.Reply -
squatchman You just tell the investors that your stock is simply undervalued and that you have a solid product which will take off if given enough time.Reply
Essentially, you lie! -
doggykyle Intel did not post a loss for Q4 they were down 90% from Q3 but they still had a net profit of ~$240 million. Do a little bit of fact checking.Reply -
dvmoo7 "The question now we should be asking is when will AMD ask for TARP bail out?"Reply
I think they already did.. The-Arab-Relief-Program :) -
smalltime0 Hopefully the Phenom II release buys AMD enough time to release the proper fusion platform, which should restore their performance lead.Reply -
pbrigido smalltime0Hopefully the Phenom II release buys AMD enough time to release the proper fusion platform, which should restore their performance lead.Reply
AMD has a lot longer to go to reclaim that title my friend. They will, however, tighten their grip on the value end of things. -
smalltime0 pbrigidoAMD has a lot longer to go to reclaim that title my friend. They will, however, tighten their grip on the value end of things.If fusion lives up to its potential, which is almost latency free communication between the processor and graphics processor, Intel should not be able to match it.Reply
Of course, whilst AMD almost always has the better technology they mess up its implementation.