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Net loss for AMD for ninth straight quarter

Net loss for AMD for ninth straight quarter
AFP
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First Published: Fri, Jan 23 2009. 10 00 AM IST
Updated: Fri, Jan 23 2009. 10 00 AM IST
Washington: Advanced Micro Devices (AMD), the world’s second-largest computer chip maker, reported a net loss on Thursday for the ninth quarter in a row.
The Santa Clara, California-based company reported a net loss of $1.4 billion for the fourth quarter of the year, a slight improvement from the net loss of $1.8 billion for the corresponding quarter a year ago.
Revenue was $1.16 billion in the fourth quarter, down 33% from the fourth quarter of 2007, it said.
For the fiscal year ending 27 December 2008, AMD reported a net loss of $3.1 billion on revenue of $5.81 billion compared with a net loss of $3.4 billion on revenue of $5.86 billion in 2007.
“Although industry visibility is poor, our priorities remain clear and achievable,” AMD president and chief executive Dirk Meyer said in a statement.
“We expect our ongoing restructuring actions and asset smart strategy, combined with the strength of our innovative product offerings, will leave us well positioned for a global market recovery,” he added.
Meyer said that AMD expects a joint venture, The Foundry Company, with capital from two Abu Dhabi investment firms to go ahead in February.
The venture is with the Advanced Technology Investment Company (ATIC), a firm owned by the government of Abu Dhabi. ATIC will own a 55.6% share of the venture.
Another Abu Dhabi investment firm, the Mubadala Development Co, will increase its investment in AMD to 19.3% from the current 8.1% through the purchase of shares and warrants worth $314 million.
AMD, which has been losing money and falling behind market leader Intel Corp, has said the move would result in one company that designs semiconductors and another that builds them.
The company did not release an outlook for the upcoming year but said that “in light of the current macroeconomic conditions,” it expected first quarter revenue to decrease from the previous quarter.
AMD last week said it will cut 1,100 jobs, or 9% of its global workforce, and trim salaries to “navigate the turbulent economic conditions.”
Intel announced plans on Wednesday to close facilities in Malaysia, the Philippines and the United States, a move that could affect up to 6,000 employees worldwide.
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First Published: Fri, Jan 23 2009. 10 00 AM IST