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AMD reports Q4 loss as graphics sales dip

by Steven Williamson on 25 January 2012, 16:00

Tags: AMD (NYSE:AMD)

Quick Link: HEXUS.net/qabbrr

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Advanced Micro Devices has reported a net loss of $177 million in the fourth quarter of 2011, citing high restructuring costs - the GlobalFoundries deal went south - and falling sales of graphics products as responsible for its lack of growth.

Strong sales of server systems and chips for laptop computers, however, ensured that revenue was slightly up on the last quarter to $1.69 billion, and in a conference call yesterday with journalists and analysts, AMD president and CEO, Rory Read, remained upbeat.

"AMD shipped more than 30 million APU’s in 2011, resulting in record annual notebook revenue,” said Read.  “The unmatched combination of computing and graphics capabilities in our low-power ‘Brazos’  platform has made it our fastest ramping platform ever, paving the way for continued growth in key segments and geographies.  Our server business has re-gained momentum, delivering two consecutive quarters of strong sequential growth."

Read partly blames the floods in Thailand last year which affected the supply of hard-disk drives worldwide thus impacting on sales of AMD’s graphics products, but expects the market to return to normality in 2012 with an increase in sales of its Radeon HD 7970 GPUs. With the introduction of the AMD 'Trinity' series of APUs, which will enable its OEM partners to build ultrathin notebooks, it also hopes to compete against rival Intel who also has major plans to penetrate the growing notebook market.

Nonetheless, AMD has now forecast a further 8 percent drop in revenue for the current quarter. Shares in the company dropped by 1.23 percent by close of trading on Tuesday.

Full details of AMD's Q4 results can be found here.


HEXUS Forums :: 3 Comments

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The loss is actually have been down to other factors:

http://forums.hexus.net/pc-hardware/225529-global-foundries-still-loosing-amd-money.html [forums.hexus.net]

The revenues has actually been flat,but the main reason there was a loss was due to a $209 million write-off related to Global Foundries and a $98 million loss due to the restructuring.

Edit!!

Wrong AMD article linked to in OP! Those are results for Q4 2009.
It was still a net profit over the full year which makes a change for amd as during the good times when the rest of the world still had money they were loosing it hand over fist for something like 3-4 years in a row if my memory serves me right to the point they were running out of reserves yet managed to buy out ati with what was left.
In the current financial climate any company that makes money over a year should be well received by investors and not slated (like google recently was) for not making as much as someone outside of the company 'predicted' they would make.
These outsiders make me feel almost as sick as pointless patents and there lawyers.
i'd say they were also down due to people waiting for the mainstream new gpu's, i know i've held off waiting to see what the 7850 & 7870 come out at in both cost & performance.