SAN JOSE, Calif. -- Freescale Semiconductor Inc. continues to spill red ink. It lost nearly $8 billion in 2008, but real question is clear: How long can this go on?
Freescale (Austin, Texas) posted a loss of $4.029 billion in the quarter, compared to a loss of $3.481 billion in the previous period, and a loss of $525 million a year ago.
The operating loss for the fourth quarter of 2008 included non-cash charges related to an impairment to goodwill and intangible assets totaling $3.6 billion. As reported, Freescale implemented a layoff and announced it was exploring strategic options for its cellular handset business.
Net sales for the fourth quarter of 2008 were $940 million, compared to $1.4 billion in the third quarter of 2008 and $1.5 billion in the fourth quarter of 2007. Net sales for the fourth quarter of 2008 declined 33 percent from the third quarter of 2008 and 39 percent compared to the same period last year.
Net sales for fiscal year 2008 were $5.2 billion, compared to $5.7 billion in the prior year. Freescale lost $7.939 billion in 2008, compared to a loss of $1.613 billion in 2007.
''The challenging economic climate significantly impacted our fourth quarter results,'' said Rich Beyer, chairman and chief executive, in a statement. ''Despite the current climate, our priorities are clear and achievable. We remain focused on further reducing our break even point while ensuring we execute on our strategic growth initiatives and leverage our market leadership positions.''