Feeds

AMD gains altitude in Q4 but hit by ATI scud missle

Still expects profits in Q3 '08

The next step in data security

AMD says its chugging ever-closer to profitability. Perhaps it's right. The chip fabbing second-banana's losses shrunk in the fourth quarter of '07 — well, sort of.

The company said it achieved a "near break-even performance" in the traditionally strong Q4 sales season. A feat that's true in the theoretical sense, but largely figure of fancy due to a $1.68bn write-down from its purchase of graphics chip maker ATI.

AMD's fourth quarter net loss in fact totaled $1.77bn. A solid tumble from being $576m in the red a year ago. However, if not for the one-time charges, AMD would have recorded a loss of $9m this quarter.

Revenue was flat with last year at $1.77bn. AMD's chip segment revenue was $1.4bn, an increase from $1.37bn year-over-year. Graphics and chipsets segment revenue was $259m, down from last year (as a former ATI operation) at $398m.

AMD said it's sticking with a plan laid down in December to fix a year's worth of financial losses, design gaffes, sagging market share, doom-calling analysts and costly chip distribution.

"Everything we told you at the analysts' meeting is on plan, and there is no change in any of the information we gave you," CEO Hector Ruiz said today in the quarterly conference call.

The company still expects to break-even in the second quarter of this year and to return an operating profit in the third. It said the design flaw haunting AMD's Opteron chips has been fixed, and plans to ship samples to customers in two to three weeks.

CFO Robert Rivet said today it shipped a record number of microprocessor units in Q4, including about 400,000 quad-core processors. Microprocessor shipments rose 7 per cent from the third quarter and server chips grew 22 per cent, due to its quad-core Opterons.

AMD followed a quarterly report on Tuesday from Intel, which suffered a bout of investor panic over the possibility of tech companies being hurt by slowing US economic growth. Despite reporting record fourth quarter revenue, Intel shares received a pummeling due to the company missing lofty analyst estimates. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
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.