AMD reports narrower loss

16.10.2008
Advanced Micro Devices reported a narrower loss than expected for its third quarter on increased sales of its microprocessors and graphics chips, the company said Thursday.

It was AMD's eighth consecutive quarterly loss but a much smaller one than the year before. The loss was US$67 million, or $0.11 per share, compared with a loss of $396 million, or $0.71 per share, in the third quarter of 2007. Revenue climbed 14 percent to $1.78 billion, 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.

The revenue and profit figures both came in ahead of analyst forecasts, according to Thomson Reuters.

"AMD had a well-executed third quarter in the context of a challenging environment," CFO Bob Rivet said on a conference call. "We reached our goal of achieving operating profitability."

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. The growth came from AMD's quad-core Barcelona server processor, which had its first full quarter of shipments following delays, and from new Radion 4000 graphics chips that shipped during the quarter.