AMD swings to $611m loss
800-pound gorilla Intel provides the vine
AMD is reporting today a first-quarter loss of $611m amid a price-war to hold market share won back from rival Intel. The loss is larger than analysts expected, and AMD chief financial officer Robert Rivet calls the performance "disappointing and unacceptable".
The net $611m loss compares with a Q1 '06 profit of $185m.
AMD first quarter sales fell to $1.23bn, down from $1.33bn last year, in line with AMD forecasts earlier this month.
AMD attributes the loss to significantly lower microprocessor shipments, lower average selling prices and low-margin Q1 ATI operations. The company said server and desktop chip shipments and revenues declined significantly, while mobile chip unit shipments and revenue increased significantly.
The company expects revenue for the second quarter to be "flat to slightly up".
AMD continues to struggle against market leader Intel and its new line-up of chips that has made AMD's momentum hit a brick wall. Yesterday Intel reported a $1.61bn profit for Q1, with $8.94bn in sales (1 per cent down from last year.) ®