AMD reports $1.4B loss in Q4, revenue down 33%
updated 06:30 pm EST, Thu January 22, 2009
AMD reports Q4 loss
Chip-maker AMD today disclosed its Q4 financial information, reporting a net loss of $1.42 billion and a revenue drop of 33 percent compared to last year's quarter. The $1.16 billion revenue even fell below the warning announced in December that anticipated $1.2 billion, which already included a 25 percent drop from the forecast made in the previous quarter. The company isn't alone in its struggles through the economic strife, with Intel last week indicating a similar loss of $1.1 billion through the same period.
Revenue from microprocessors declined by 38 percent compared to last year, while units and average selling prices were both down. Graphics processing components showed slightly better performance, with higher average selling prices, although the revenue still slid by eight percent and the company shipped fewer products.
“Although industry visibility is poor, our priorities remain clear and achievable,” said Dirk Meyer, president and CEO. “We remain focused on further reducing our breakeven point through targeted restructuring actions while ensuring we execute our highly-competitive product and technology roadmaps."
AMD is still in the process of spinning off a separate entity, The Foundry Company, that will handle semiconductor manufacturing, while the original company handles chip designs. The shift is intended to allow AMD to focus on its core business, while enabling both branches to address independent needs. The deal is set to be closed sometime in February.
Despite the impending changes, the company still expects revenue to decline through the first quarter of 2009.
