AMD loss $358M in the first quarter

AMD CFO Robert J. Rivet attributes this poor performance to "a seasonally weak first quarter . . . amplified by a challenging economic environment for consumers and lower than expected revenues of previous generation products." AMD's sales were lower than expected in all of its business segments, Rivet adds. To make things worse, AMD's gross margin slumped from 44% in Q4 '07 to 42% in Q1 '08, although it's still higher than the paltry 28% the company recorded in Q1 '07.

Indeed, AMD has posted a net loss of $358 million and an operating loss of $264 million for the first quarter. That second figure represents a clear step back from the fourth quarter of 2007, when AMD's operating loss was only $9 million. At first glance, the net income figure appears more tame than the $1.772 billion net loss AMD posted in Q4 '07. However, considering $1.608 billion of that $1.772 billion corresponded to a write-off of non-material assets, AMD seems to have registered a greater material loss in Q1 '08.

Chip-maker AMD revealed some first quarter financial numbers today, and the results aren't exactly stellar. Total revenue for the company was $1.505 billion, but it had sustained a net loss of $358 million, or $0.59 per share, and an operating loss of $264 million. These results include an impact of $50 million, or $0.08 per share, from ATI acquisition-related charges. However, although first quarter revenue decreased 15% compared to the fourth quarter of 2007, it actually increased 22% compared to the first quarter of 2007.

“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.” said Robert J. Rivet, AMD’s Chief Financial officer. “We remain committed to achieve operating profitability in the second half of the year, driven by our portfolio of new products and platforms and aggressive restructuring programs.”