AMD bleeds another $416 million

AMD announced its first quarter results today, the fabless chip maker reported a loss of $416 million, or 66 cents per share, on a revenue of $1.18 billion. First quarter revenue was down 21 percent from last year's $1.5 billion, and AMD expects revenue will further decline in the second quarter. The company claims processor revenue rose 7 percent to $938 million last quarter, while graphics processor revenue went down 18 percent to $222 million. The income breakdown reveals AMD lost $36 million on the sales of its processors, and made $1 million in profit on the sales of its graphics division.

The adjusted loss was 62 cents per share, thereby slightly beating Wall Street estimates of a loss of 66 cents on a revenue of around $1 billion.

“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,” said Dirk Meyer, AMD president and CEO. “We delivered on a number of important priorities in the first quarter. We launched GLOBALFOUNDRIES, maintained our cadence of new product and platform introductions, and made solid progress on our restructuring activities. The result is a more nimble AMD, capable of achieving long-term success based on our strengths designing and integrating industry-leading computing and graphics technologies.”

In the first quarter of 2009, AMD reported a net loss attributable to AMD common stockholders of $416 million or $0.66 per share, which includes a net unfavorable impact of $22 million, or $0.04 per share. AMD’s operating loss was $308 million.

In the first quarter of 2009, AMD Product Company reported an adjusted non-GAAP net loss of $189 million and an adjusted non-GAAP operating loss of $124 million.

First quarter 2009 AMD gross margin was 43 percent, including a positive impact of 5 percentage points due to a $64 million benefit from the sale of inventory written down in the fourth quarter of 2008. Fourth quarter 2008 gross margin was 23 percent, including a negative impact of 20 percentage points due to a $227 million inventory write down. First quarter 2009 AMD Product Company non-GAAP gross margin was 35 percent.