AMD Posts a Net Loss but Earnings Beat Forecasts
Advanced Micro reported a net loss as it tries to win market share in a market dominated by Intelbut its earnings and revenue beat expectations, sending its shares higher in after-hours trading on Thursday.
The chip maker posted a net loss of $590 million, or 80 cents a share.
Excluding items, it earned 12 cents a share on revenue of $1.59 billion, a decrease from $1.61 billion a year ago. However, this still topped market expectations.
Analysts had expected earnings of 9 cents a share on revenue of $1.56 billion, according to Thomson Reuters.
Shaky economies in Europe and the unsteady recovery in the United States, a growing consumer preference for tablets, and a recent shortage of hard drives due to flooding in Thailand last year have taken a toll on the PC industry.
AMD faces stiff competition as Intel starts shipping its newest powerful PC chip, code-named Ivy Bridge, and builds sales of its recently launched Romley server platform.
But AMD has been launching new processors of its own, and new CEO Rory Read has been working to improve on long-standing execution troubles.
After the announcement, shares of the company rose in after-hours trading.Get after-hour quotes for AMD here.