Feeds

AMD makes massive Q4 loss

Misses revenue target

  • alert
  • submit to reddit
ComputerWire: IT Industry Intelligence

Advanced Micro Devices Inc reported a massive loss for its fourth quarter yesterday and failed to meet the raised revenue forecast it set itself back in December.

Although the Sunnyvale, California-based vendor saw increased shipments of its CPU and flash memory products, its already large operating losses were swollen by special charges, resulting in a total net loss of $854.7m.

The company sought to placate investors by predicting first quarter sales would be flat to nominally up, saying that it was on target to reduce its cost structure to below $800m, and by setting an April ship date for Opteron, the hybrid 32bit/64bit processor it hopes will launch it into the high end computing space.

In December, AMD raised its fourth quarter guidance, saying sales would be $700m. Yesterday it revealed sales actually came in at $686.4m, down 27.9% on the year. Operating loss was $560m, compared to a $17m loss a year ago, while net loss was $854.7m, compared to $15.8m a year ago.

The fourth quarter loss included charges of $331m relating to restructuring and asset impairments, $46m for R&D expenses, and an income tax expense charge of $243m to establish a 100% valuation allowance against net deferred tax assets. The company had predicted the restructuring and tax charges back in December.

For the year to date, sales were $$2.7bn, down 30.7% on the year. Operating loss was $1.2bn compared to a $58.3m loss a year ago, while net loss was $1.3bn compared to a $60.6m loss a year ago.

© ComputerWire

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.