AMD reports narrower loss

16.10.2008
Advanced Micro Devices reported a quarterly loss again for its third quarter but managed to increase revenue 14 percent on sales of its microprocessors and graphics chips, the company said Thursday.

It was AMD's eighth consecutive quarterly loss, albeit a narrower one than the year before. The loss was $67 million, or $0.11 per share, compared to a loss of $396 million, or $0.71 per share, in the third quarter of 2007. Revenue came in at $1.78 billion, up from $1.56 billion a year earlier.

The net loss is based on generally accepted accounting principles. On a non-GAAP basis, excluding a loss of $108 million from discontinued operations, as well as other charges, AMD said it would have reported a profit for the quarter of $80 million.

Revenue from AMD's microprocessor unit climbed 8 percent year over year, to $1.39 billion, while revenue from its graphics business climbed 40 percent to $385 million.

Last week AMD announced a plan to stem its losses by spinning off its chip-manufacturing business into a separate company. Analysts said the move could help AMD return to profitability by freeing it of the costly burden of building and maintaining its own manufacturing plants. The company would continue to design and sell its chips but have them manufactured by a third party.

AMD's shares were up 5 percent ahead of the report Thursday, closing at $4.12. The stock moved 3 percent lower after the report was issued, dropping to $4.00 in after hours trading.