Feeds

AMD's chip-supply reassessment leads to big quarterly losses

'But if you ignore that charge, we're doing okay'

The essential guide to IT transformation

AMD has released its financial results for the fourth quarter of 2012, and as expected, the numbers aren't pretty.

In early December, AMD slashed its Wafer Supply Agreement with its chip-baking partner, Globalfoundries, and warned investors that it was going to take a sharp hit due to that action.

They were right. If that expensive move is taken into account, AMD posted an operating loss of $422m and a net loss of $473m, resulting in a loss per share of 63¢ on revenues of $1.16bn.

Without taking those WSA charges into account, however, operating losses were $55m, net losses $102m, with a loss per share of 14¢. As the company pointed out when announcing its results, Wall Street's earnings-per-share loss estimates were around 20¢ per share.

"These estimates best align with our non-GAAP results," the company said, "which primarily exclude the accounting charge for our amended Wafer Supply Agreement with Globalfoundries as well as restructuring charges."

AMD is correct in its analysis of the Wall Street moneymen's low expectations. The average of the 29 analysts polled by Marketwatch predicted a loss of 21¢ per share, while the 27 analysts cited by Yahoo! Finance prognosticated a loss of only slighly less at 20¢ and Bloomberg Businessweek's 25 analysts were marginally more optimistic, saying that AMD would lose 19¢ per share.

Two of those three groups of analysts were also generally consistent with their predictions for AMD's revenues for the quarter, as well, with Yahoo! Finance prognosticating $1.15bn and Businessweek predicting $1.1bn – Marketwatch didn't provide a revenue estimate.

At least AMD managed to exceed those analysts' revenue targets – but for the quarter currently underway, the company expects revenue to decrease another 9 per cent, give or take 3 per cent.

"AMD continues to evolve our operating model and diversify our product portfolio with the changing PC environment," said AMD president and CEO Rory Read in a statement. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.