AMD lost $574 million in Q4 2006

Posted on Wednesday, January 24 2007 @ 15:32 CET by Thomas De Maesschalck

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.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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