SAN JOSE, Calif. -- Advanced Micro Devices Inc. (AMD) narrowed its losses, but the troubled chip maker experienced its sixth consecutive quarterly deficit. And more losses are expected for the microprocessor maker.
AMD (Sunnyvale, Calif.) reported first-quarter revenue of $1.505 billion and a net loss of $358 million, or minus $0.59 per share, and an operating loss of $264 million. These results include an impact of $50 million, or $0.08 per share, from ATI acquisition-related charges.
First quarter revenue decreased 15 percent compared to the fourth quarter of 2007 and increased 22 percent compared to the first quarter of 2007.
In the fourth quarter of 2007, AMD reported revenue of $1.770 billion, a net loss of $1.772 billion, and an operating loss of $1.678 billion. In the first quarter of 2007, AMD reported revenue of $1.233 billion, a net loss $611 million, and an operating loss of $504 million.
''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,'' said Robert J. Rivet, AMD's chief financial officer, in a statement. ''We remain committed to achieve operating profitability in the second half of the year, driven by our portfolio of new products and platforms and aggressive restructuring programs.''
In the seasonally down second quarter, AMD expects revenue to decrease in line with seasonality. As previously disclosed, AMD expects to record a restructuring charge in the second quarter of 2008.
Troubled AMD recently announced plans to adjust its cost structure by reducing its workforce by approximately 10 percent by the end of the third quarter of 2008. The job cuts involve more than 1,600 workers out of 16,800 worldwide, according to wire reports.
The layoff follows a series of problems at AMD, which has been hit hard by competitive pressures from rival Intel Corp. Last year, AMD had some design problems with its server chip, dubbed Barcelona. And it is still having some integration issues with the ill-fated acquisition of ATI.