AMD Posts Narrower-Than-Expected Loss

AMD
Source: AMD.com
AMD

Advanced Micro Devices reported a fourth-quarter loss on a non-GAAP basis that was narrower than analysts' estimates.

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AMD reported a loss per share of 63 cents on revenue of $1.16 billion. On a non-GAAP basis, AMD's operating loss was 14 cents per share. Revenue was down nearly a third from the year-earlier quarter as it grapples with a declining PC market and a shift toward smartphones and tablets.

The company's gross margin contracted to 15 percent from 46 percent a year earlier.

The Street had expected a 20 cent loss on $1.15 billion in revenues, according to Thomson Reuters estimates.

Analysts had braced themselves for a lackluster report, given the steep decline in personal computing unit sales and AMD's announcement in its last earnings release that it planned to lay off 15 percent of its workforce.

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

AMD expects revenue to decrease 9 percent, plus or minus three percent, sequentially for the first quarter of 2013.