AMD posts loss; sees seasonally down quarter ahead
AMD reported a first quarter net loss of $358 million, or 59 cents a share, on revenue of $1.50 billion.
The results were in line with AMD's previous profit warning.
Despite the hefty loss, AMD is showing some improvement. The company had a net loss of $611 million a year ago and $1.77 billion in the fourth quarter.
AMD CFO Robert Rivet said in a statement the company is committed to hitting operating profitability in the second half. He noted:
"A seasonally weak first quarter was amplified by a challenging economic environment for consumers and lower than expected revenues of previous generation products, resulting in lower than expected revenues in all business segments. However, we are encouraged by the market acceptance of our Quad-Core AMD Opteron server processors as well as our new chipset and graphics offerings."
However, first quarter gross margin was 42 percent, down from 44 percent in the fourth quarter but up from 28 percent a year ago. A decrease in unit shipments dinged AMD. AMD noted that average selling prices were flat from the fourth quarter and year ago quarter.
As for the outlook, AMD said:
In the seasonally down second quarter, AMD expects revenue to decrease in line with seasonality. As previously disclosed, AMD expects to record a restructuring charge in the second quarter of 2008.