AMD announced a net loss of $358 million, or 59 cents per share, on a revenue of $1.5 billion. The results included ATI acquisition-related charges of 8 cents per share. The chip maker's results are better than the year before when they lost $611 million, or $1.1 per share, but it's worse than analysts expected:
Revenue was $1.5 billion, up from $1.23 billion for the year-ago period. Analysts had expected the chipmaker to report a loss of 48 cents a share on revenue of $1.52 billion, according to FactSet Research.
In a statement, AMD Chief Financial Officer Robert Rivet said, "A seasonally weak first quarter was amplified by a challenging economic environment for consumers and lower than expected revenues of previous generation products, resulting in lower than expected revenues in all business segments."
But he said the company is encouraged by the way the market has responded to its new server and graphics products.
AMD says it expects a lower revenue in the second quarter due to seasonality, they announced they will restructure and layoff 10 percent of their workforce by the end of September. This is the sixth time in a row that AMD reported a loss.
After the announcement AMD's shares gained 2.58% in afterhours trading.