AMD's Q1 loss comes in as planned

Chipmaker AMD posted its sixth consecutive loss yesterday, for the first quarter of 2008. The firm brought in revenues of $1.51bn, but made a net loss of $358m and an operating loss of $264m.

The loss comes as no surprise - AMD said earlier in the month that it would cut one in ten jobs after suffering from falling sales across its whole business. It hit its lowered targets for the period, which were 15 per cent down on the fourth quarter.

Sales of $1.51bn were up from $1.23bn in the first quarter of 2007.

AMD chief finance officer Robert Rivet said: "A seasonally weak first quarter was amplified by a challenging economic environment for consumers and lower than expected revenues of previous generation products...".

He said the company was encouraged by acceptance of its new and much delayed quad-core server chips and remained confident of hitting operating profit in the second half of the year.

AMD shares closed up nearly two per cent in New York yesterday. ®