While Intel's profits went up 51 percent to $2.27 billion in the fourth quarter of last year AMD's financial results look less appealing. The processor maker reported a fourth-quarter net loss of $1.77 billion, or $3.06 per share.
The report includes large charges related to the purchase of ATI. AMD bought this firm in 2006 for $5.4 billion but announced in late 2007 that it had overestimated ATI's value. The financial report includes a charge of $1.68 billion, or $2.89 per share, for its purchase of ATI.
For the current, first quarter, AMD expects its revenue to "decrease in line with seasonality" when compared with the fourth-quarter. AMD shares were little changed in after-hours trading after the results.
AMD, which trails market leader Intel Corp, said its fourth-quarter net loss was $1.77 billion, or $3.06 per share, compared with a year-ago net loss of $576.0 million, or $1.08, per share. Revenue was $1.77 billion, unchanged from a year ago.
Analysts surveyed by Reuters Estimates expected AMD to have fourth-quarter revenue of $1.79 billion.
The year-ago period also included large charges for its purchase of graphics chipmaker ATI. On a per-share basis, AMD said the charge in the just-reported quarter amounted to $2.89 per share.
AMD's results come two days after Intel reported a 51 percent rise in fourth-quarter net income, but sounded a cautious note about the first quarter amid concerns of a possible U.S. recession.
AMD stumbled in 2007, missing expected shipment dates of a key microprocessor, as its rival Intel regained its footing after missteps of its own in 2005 and 2006. The world's biggest chipmaker has since regained market share once lost to AMD.
It appears AMD is slowly getting back on its feet, the company had a loss of $0.17 per share without the charge which is better than analysts were expecting.