By Benjamin Pimentel
Advanced Micro Devices Inc. on Tuesday reported a bigger
first-quarter loss, but posted better-than-expected sales as Chief
Executive Dirk Meyer sought to highlight "a more nimble AMD."
AMD (AMD) reported a first-quarter loss of $416 million, or 66
cents a share, compared with a loss of $364 million, or 60 cents a
share, for the year-earlier period. Revenue was $1.2 billion, down
from $1.5 billion for the same period last year.
The results included a net unfavorable impact of $22 million, or
4 cents a share, the company said. AMD reported an operating loss
totaling $308 million.
Analysts had expected the Sunnyvale, Calif.-based chip maker to
report a loss of 66 cents a share on revenue of $1 billion,
according to a consensus survey by FactSet Research.
AMD reported results after formally spinning off its
manufacturing facilities into a new company called GlobalFoundries,
which analysts say should help ease the chip maker's financial
burdens.
In a prepared statement, Meyer cited the launch of the new
company and AMD's new products, saying, "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."
AMD said it expects its product revenue "to be down for the
second quarter" as it cited "limited visibility and historical
seasonal patterns."
Analysts currently expect the company to report a loss of 53
cents a share, on revenue of $977 million, according to a consensus
survey by FactSet Research.
Broadpoint.AmTech analyst Doug Freedman noted that AMD posited a
"big top line beat." "However the outlook of [a] seasonal down
second quarter likely has investors concerned," he added.
He also said, "It looks like AMD regained some share in CPU
[central processing unit]/Chipset market in the first quarter of
2009 without a major price battle breaking out."
-Benjamin Pimentel; 415-439-6400; AskNewswires@dowjones.com