Feeds

AMD records 11th straight loss

Intel not feeling its pain

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

To appreciate the woe that comes when you're Advanced Micro Devices, look no further than the No. 2 PC processor maker's second-quarter financial results, which were announced Tuesday.

While Intel and Texas Instruments are widely believed to have stabilized during the same period, AMD remained mired in a deep funk that saw the company report its 11th straight loss and its third year-on-year revenue decline. Slumping processor demand across the board also drove down gross margin to 37 percent, from 38 percent in the same quarter last year.

"In the second quarter, despite softness in the global economy, end-user PC demand stabilized, but the characteristics of the economy are playing out quite differently across customers, channels and particularly geographies," CEO Dirk Meyer said during a conference call with analysts and reporters. Translation: the tide lifting some boats isn't being enjoyed by all.

For the quarter that ended in June, AMD's loss narrowed to $330m, or 49 cents a share, from $1.92bn, or $1.97a share, in the same period last year. The red ink would have been much worse but for $86m, or 13 cents a share, in sales of older inventory AMD wrote down in the fourth quarter.

Sales slid 13 percent to $1.18bn from $1.36 in the second quarter of 2008. The resulting excess fabrication capacity, combined with lower average selling prices, were the two biggest contributors to AMD's lower gross margins.

Second-quarter sales came in below analyst expectations, and AMD's forecast that revenues will be "up slightly" during the current period mean the company isn't likely to meet forecasts for a 7-percent increase analysts had projected.

The company's shares sank 48 cents, or 12 percent, in after-hours trading to $3.60.

With things as bleak as they are at the moment, Meyer naturally turned attention to newer products. The current quarter will be the first to fully incorporate sales of its new six-core Istanbul processor, which is compatible with current sockets to make upgrading easy.

The company is also expecting gross margins in the second half of 2009 to improve, in large part because a larger percentage of chips sold will be made using 45-nanometer features, which cost less to make. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
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
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
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?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.