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

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.