AMD Posts Sixth Straight Quarterly Loss
Advanced Micro Devicesposted its sixth consecutive quarterly net loss as it bleeds market share to far larger rival Intel, even as Intel and other high-tech companies like IBM have so far posted generally positive earnings reports.
AMD , which was held back by a chip glitch that has now been fixed and hurt by other factors, said its first-quarter net loss actually narrowed to $358 million, or 59 cents a share, from $611.0 million, or $1.11 a share, a year ago.
Revenue advanced 22 percent to $1.51 billion from $1.23 billion.
AMD, based in Sunnyvale, California, warned on April 7 that it would cut 10 percent of its work force, or about 1,680 jobs, and gave a first-quarter revenue estimate below expectations, sending its shares down as much as 5 percent that day.
Citing far lower-than-expected sales across its businesses, AMD estimated revenue for the quarter ended March 29 at about $1.5 billion, well below the average analyst forecast at the time of $1.62 billion, according to Reuters Estimates.
Shares of AMD have fallen 55 percent in the last 12 months, based on Wednesday's closing prices, compared with a 7 percent gain for Intel .
The Philadelphia Stock Exchange Semiconductor Index is down 22 percent over the same period.
Intel stock trades about 3.0 times its estimated sales in calendar 2008, compared with 0.55 for AMD, according to Reuters Estimates.