AMD today officially announced its fourth-quarter financial results, and they don't look pretty. With ATI's revenue included AMD's total revenue was $1.33 billion in Q4 2006 but the company reported a loss of $574 million.
This is a loss of $1.08 per share, but AMD says most of it was caused by the acquisition of ATI which accounted for $550 million and also $27 million in stock-based compensations.
Excluding ATI's revenue, AMD's revenue slightly soared from $1.35 billion in Q4 2005 to $1.37 billion in Q4 2006. Sales of processors reached new records but this didn't increase profits because of lower prices. Just like Intel, AMD experienced lower margins because of the processor price war. AMD's gross margin dropped from 51 percent in Q3 2006 to only 36 percent in the fourth quarter.
For the entire year, AMD presented a $166 million loss on revenue of $5.65 billion.