AMD Reports Massive Loss for 2008

AMD has been struggling for years now with profitability and competing with rival chipmakers. The world’s second largest chipmaker has seen hard times and things still aren’t looking up for the company.

AMD has posted its Q4 2008 and fiscal 2008 earnings reports, and things don’t look good. For Q4 2008 AMD reports revenue from continued operations was $1.162 billion. While that sounds like a lot of revenue, the number is down 35 percent from Q3 2008 and down 33 percent from Q4 2007.

The chipmaker reported a net loss of $1.424 billion for the quarter or $2.34 per share. The loss for continuing operations for the quarter was $1.414 billion. Q4 2008 revenue was down 28 percent sequentially with Q3 process technology license revenue of $191 million excluded.

AMD reports that for its fiscal 2008 year ending on December 27, 2008 it produced revenue of $5.808 billion and posted a massive net loss of $3.098 billion. The end of fiscal 2008 marks the second straight year where AMD posted a net loss in excess of $3 billion. The net loss in fiscal 2007 totaled $3.379 billion.

The chipmaker notes that the results for its continuing operations include a negative impact of $996 million resulting from the write-down of ATIs value, formation of The Foundry Company, restructuring charges and other items.

AMD President and CEO Dirk Meyer said in a statement, “Although industry visibility is poor, our priorities remain clear and achievable. We remain focused on further reducing our breakeven point through targeted restructuring actions while ensuring we execute our highly-competitive product and technology roadmaps. We made significant progress toward the creation of ‘The Foundry Company’ in the quarter, and anticipate closing the transaction in February. We expect our ongoing restructuring actions and asset smart strategy, combined with the strength of our innovative product offerings, will leave us well positioned for a global market recovery.”

AMD’s main rival, Intel, announced yesterday that it would close some of its fabrication plants and consolidate manufacturing to improve its financial outlook.