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EARNINGS

AMD Posts $17.7-Million Loss

January 19, 1987|DONNA K. H. WALTERS | Times Staff Writer

Advanced Micro Devices said its losses in its third quarter ended Dec. 28 deepened from the year-ago period even though sales rose a modest 4%. The Sunnyvale, Calif., chip maker on Friday reported a net loss of $17.7 million on sales of $150.2 million, compared to $10.7-million losses on $144-million sales in the comparable period the year before.

The company said, however, that it was beginning to see during the quarter results of a cost-reduction program begun in the second quarter. Compared to that immediately previous period, operating losses were reduced by more than $9 million on lower sales.

For the nine-month period, AMD's losses widened to $92.5 million, including an extraordinary charge of $19.9 million in the second quarter related to the cost-reduction programs. That compared to a $25.3-million loss in the first nine months of fiscal 1985.

Advanced Micro's results parallel reports by other Silicon Valley chip makers. With only moderate relief from the worldwide industry slump in orders, semiconductor manufacturers have been narrowing their losses through a series of restructuring moves that have included plant closings and continuing layoffs.

Earlier, Santa Clara, Calif.-based Intel reported a year-end loss of $173 million on revenue of $1.3 billion, compared to profits of $2 million in 1985 on sales of $1.4 billion. But that company also said its performance strengthened in the fourth quarter over the immediately prior three months.

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