The volume of microprocessors AMD shipped was down in all segments, CFO Bob Rivet said. Average selling prices fell overall, he said, although they were kept afloat in the server segment by new quad-core Opteron chips that shipped in the quarter.

The Computing Solutions Group, which sells AMD's PC and server chips, reported an operating loss of $431 million, including a $227 million writedown against excess inventory. Revenue from the group was $873 million, down 27 percent from the third quarter.

Its graphics business reported an operating loss of $10 million on $270 million in revenue, which was down 30 percent from the revenue in the third quarter.

The results follow AMD's news on Monday that it will cut 1,100 more jobs and lower its workers' salaries to reduce costs. The job cuts follow about 2,100 layoffs that AMD announced last year.

Almost the entire PC industry is suffering from the economic climate, which has caused both businesses and home users to cut back spending. Fourth-quarter PC sales declined by 0.4 percent in the fourth quarter, IDC said last week, and it expects them to stay weak through at least the end of this year.