AMD reported a loss of US$1.42 billion for the quarter ended Dec. 27, an improvement on its loss of $1.77 billion a year earlier. Revenue fell to $1.16 billion, however, down from $1.74 billion in the fourth quarter of 2007, AMD said.

The loss included a goodwill impairment charge of $684 million related to AMD's acquisition of ATI Technologies in 2006. Excluding that and other one-time charges, the loss would have been $418 million, or $0.69 per share, AMD said.

Analysts had been expecting revenue of $1.23 billion and a loss per share before charges of $0.54, according to a poll by Thomson Reuters.

"The fourth quarter is going to be remembered for the severe stresses placed on the global economy and on our industry," AMD President and CEO Dirk Meyer said in a conference call to discuss the results. "The global economic environment led to a softening in end-user demand for PCs and servers in what is usually the year's strongest quarter."

AMD expects revenue from the first quarter this year to be lower than in the quarter that just ended, it said. It cited the weak economy, limited visibility and "corrections in the supply chain," meaning computer makers have been cutting orders for chips to clear out excess inventory.