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Earnings Roundup

AMD posts loss on ATI charges

January 18, 2008|From Times Wire Services

Still bleeding from a costly acquisition of a graphics chip company, Advanced Micro Devices Inc. slashed the value of that company by $1.6 billion in the fourth quarter, but with sales of microprocessors surging it managed to post a narrower loss than analysts had feared it would.

Still, Sunnyvale, Calif.-based AMD's losses in 2007 were staggering, capping a brutal two-year stretch in which its market value has plunged from more than $20 billion to $3.5 billion. The stock has fallen from above $40 a share in early 2006 to nearly $5 in recent weeks. For the full year, AMD rang up $6 billion in revenue, an increase of 6% over the previous year, but lost $3.38 billion, including $2 billion in noncash charges mostly related to writing down the value of graphics chip maker ATI Technologies Inc.

For the fourth quarter, AMD posted a loss of $1.77 billion, or $3.06 a share, compared with a loss of $576 million, or $1.08, a year earlier.

AMD is the world's No. 2 maker of microprocessors. It has faltered under intense pressure from leader Intel Corp. and the acquisition of ATI, which AMD bought for $5.6 billion but recently said was worth far less than that.

AMD shares fell 23 cents to $6.34 before the results were released. In after-hours trading, the stock rose 24 cents to $6.58.

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