AMD Reports Q4 Loss on Weak Graphics Sales

From PC World: Advanced Micro Devices reported a fourth-quarter net loss Tuesday on weak sales of graphics chips and charges related to a restructuring.

AMD reported a loss of US$177 million for the quarter ended Dec. 31, compared to a profit of $375 million in the same quarter a year earlier.

The loss includes a $209 million charge related to AMD's investment in Globalfoundries and a restructuring charge of $98 million. The restructuring charge follows AMD's announcement in December that it will lay off 10 percent of its workforce to reduce costs.

Excluding the charges, AMD would have made a profit of $138 million and earnings per share of $0.19, the company said. That beat the consensus analyst forecast of $0.16 per share, according to Thomson Reuters.

AMD's revenue for the quarter was $1.69 billion, flat from a year earlier.

Revenue from AMD's graphics segment decreased 10 percent, to $382 million, AMD said. The decline resulted partly from the hard-drive shortage caused by flooding in Thailand, which reduced demand for add-in graphics boards, said CEO Rory Read on a conference call.

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