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AMD losing less money than last year

AMD losing less money than last year

AMD's revenue from microprocessor sales has increased by seven percent, although the company is still making a loss.

Following a tough period in the semiconductor industry, not to mention a complete overhaul of the company's structure, AMD has now revealed its financial results for the first quarter of 2009.

Unsurprisingly, the company’s revenue was down significantly when compared with the first quarter of 2008, with a posted decrease of 21 percent. However, the company pointed out that "first quarter 2009 revenue was flat compared to the fourth quarter of 2008." Revenue from microprocessor sales also increased by seven percent compared with the fourth quarter of 2008, although the revenue from graphics processors dropped by 18 per cent from the same period.

AMD’s CEO Dirk Meyer commented positively on the microprocessor figures, saying that “AMD’s sequential microprocessor unit and revenue growth in difficult economic conditions demonstrate we can grow in an environment where customers are looking for maximum value.” However, in a webcast to discuss the figures, Meyer was very cautious about suggesting that the market had now bottomed out. "I've heard some say we've hit bottom,” said Meyer, adding that “I don't know how someone could say we’ve hit bottom given the continued uncertainty that we have in the macroeconomic climate. As a result of that, I would say that we are being cautious on our outlook."

Meyer is undoubtedly referring to recent comments by Intel’s CEO Paul Otellini, who, last week, bravely claimed that “we believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns," when Intel released its financial results for the first quarter of 2009.

Otellini went on to say that "Intel has adapted well to the current economic environment and we're benefiting from disciplined execution and agility. We're delivering a product portfolio that meets the needs of the changing market, spanning affordable computing to high-performance, energy-efficient computing." Comparatively, Intel’s results revealed that the company’s revenue was down 26 per cent compared with the first quarter of 2008, but only down 13 percent compared with the fourth quarter of 2008.

In terms of raw figures, AMD says that it’s "reported a net loss attributable to AMD common stockholders of $416 million or $0.66 per share," for the first quarter of 2009. The company says this "includes a net unfavorable impact of $22 million, or $0.04 per share", while its operating loss was $308 million for the period. This compares with a much bigger net loss of $1,443 million ($2.37 per share) in the fourth quarter of 2008.

AMD’s financial results don’t include the operating results of GlobalFoundries – AMD’s former fabrication wing, and Dirk Meyer described the new AMD as a "more nimble" company. However, the company still recorded a cost of $21 million for formation costs associated with Global Foundries, as well as a cost of $60 million for restructuring charges. You can see the full details of the results here.

Do you think Intel is right to say that the processor market has bottomed out, or is AMD right to be cautious? Let us know your thoughts in the forums.

11 Comments

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Fod 22nd April 2009, 12:13 Quote
er, yay?
DraigUK 22nd April 2009, 12:52 Quote
Great news?

AMD lost a load of money last year but this year they are still losing money, only less of it?

They should have a word with Darling they seem to be of the same optimistic mindset when it comes to budgets. :D
stonedsurd 22nd April 2009, 13:59 Quote
Am I the only one happy for them?
:p
Skiddywinks 22nd April 2009, 14:18 Quote
Quote:
Originally Posted by
I say good on them for playing it safe and not making any rash divinations.

Shame they still lost money of course, but given the economy of the day I say very well done!
mclean007 22nd April 2009, 14:48 Quote
Quote:
Originally Posted by DraigUK
Great news?

AMD lost a load of money last year but this year they are still losing money, only less of it?

They should have a word with Darling they seem to be of the same optimistic mindset when it comes to budgets. :D
Heh. Yeah, it reminds me of the future echoes in the Red Dwarf novel, where Holly puts the ships engines on full reverse thrust, but because they're going so fast, the ship is still accelerating, just not quite as quickly as before.
p3n 22nd April 2009, 14:55 Quote
Quote:
Originally Posted by mclean007
Quote:
Originally Posted by DraigUK
Great news?

AMD lost a load of money last year but this year they are still losing money, only less of it?

They should have a word with Darling they seem to be of the same optimistic mindset when it comes to budgets. :D
Heh. Yeah, it reminds me of the future echoes in the Red Dwarf novel, where Holly puts the ships engines on full reverse thrust, but because they're going so fast, the ship is still accelerating, just not quite as quickly as before.

I wonder if AMD's board uses the term 'smeg' to describe their situation, hahha
mclean007 22nd April 2009, 15:34 Quote
Quote:
Originally Posted by p3n
Quote:
Originally Posted by mclean007
Quote:
Originally Posted by DraigUK
Great news?

AMD lost a load of money last year but this year they are still losing money, only less of it?

They should have a word with Darling they seem to be of the same optimistic mindset when it comes to budgets. :D
Heh. Yeah, it reminds me of the future echoes in the Red Dwarf novel, where Holly puts the ships engines on full reverse thrust, but because they're going so fast, the ship is still accelerating, just not quite as quickly as before.

I wonder if AMD's board uses the term 'smeg' to describe their situation, hahha
Deep, deep smeg.
Dreaming 22nd April 2009, 19:28 Quote
According to my admittedly limited research I am predicting that the general economy will hit 'bottom' within the next 6 to 12 months. Certainly we are starting to see the stabilising effects lower prices are having on reducing contraction so hopefully then things will start to pick up and I expect AMD to broadly follow the trend.

Although when I say my research is limited I really mean it is very limited, it's just looking at different sources due to an undergraduate project I'm doing lol.
naokaji 22nd April 2009, 22:44 Quote
When the economy goes down the drain people buy the cheaper stuff, since amd has dropped prices for cpus more than intel and dropped prices for gpus more than nvidia its only common sense that they did not loose too badly during the crisis.
Red 5 22nd April 2009, 23:09 Quote
1. Lose less money
2.
3. Profit
HourBeforeDawn 23rd April 2009, 00:44 Quote
well it makes since that they lost less money this time around as they have the better Price to Economy suckage then Intel does so ya Im hoping that next time around they are in the green. :)
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