AMD Q1 loss shows recovery from poor Q4

Zardon · Apr 17, 2003, 09:37 PM

One week before one of the most significant product launches in its history, Advanced Micro Devices (AMD) has reported some progress in transforming itself into a profitable business.

Though the company Wednesday reported a loss of $146 million on revenue of $715 million in the first quarter of 2003, compared to a loss of $9 million on revenue of $902 million for the year-earlier period, the results were better than its disastrous quarter at the end of 2002.

Putting the blame on restructuring costs, AMD reported a loss of $855 million, including extraordinary charges, on sales of $686 million in the fourth quarter of 2002.

Now, the improvement from the end of last year, in what is generally considered to be a seasonally slow quarter, is giving the company something to cheer about.

Analysts surveyed by Thomson First Call had predicted first-quarter revenue of $683 million and a loss per share of $0.48. AMD's actual loss per share of $0.42 exceeded expectations.

Sales of its PC processors increased 11 percent from the fourth quarter of 2002 to the first quarter of 2003, from $420 million to $468 million. A general industry slump in sales of PCs is still weighing down the Sunnyvale, Calif.-based company, which made $684 million from its PC processors product lines in the first quarter of 2002.

In the flash memory market, AMD had made strides since last year's first quarter. The company took in $218 million in revenue from its flash memory products in the first quarter of this year, compared to revenue of $160 million in the same period last year. Intel reported earlier this week that it believes it lost market share in flash memory due to higher prices in the first quarter, and AMD said it expects to gain share in the second quarter.

AMD and Fujitsu signed a memorandum of understanding in March to form a new flash memory company that would integrate both companies' existing flash memory businesses.

AMD has said it needs to achieve operating expenses of $800 million in order to break even. The company managed to reduce operating expenses to $840 million in the first quarter, and expects to further reduce that number in the second quarter through the completion of previously announced layoffs. Tom Krazit

Apr 17, 2003, 09:37 PM	#1
Zardon DriverHeaven Founder Join Date: May 2002 Posts: 32,480 Rep Power: 177	AMD Q1 loss shows recovery from poor Q4 One week before one of the most significant product launches in its history, Advanced Micro Devices (AMD) has reported some progress in transforming itself into a profitable business. Though the company Wednesday reported a loss of $146 million on revenue of $715 million in the first quarter of 2003, compared to a loss of $9 million on revenue of $902 million for the year-earlier period, the results were better than its disastrous quarter at the end of 2002. Putting the blame on restructuring costs, AMD reported a loss of $855 million, including extraordinary charges, on sales of $686 million in the fourth quarter of 2002. Now, the improvement from the end of last year, in what is generally considered to be a seasonally slow quarter, is giving the company something to cheer about. Analysts surveyed by Thomson First Call had predicted first-quarter revenue of $683 million and a loss per share of $0.48. AMD's actual loss per share of $0.42 exceeded expectations. Sales of its PC processors increased 11 percent from the fourth quarter of 2002 to the first quarter of 2003, from $420 million to $468 million. A general industry slump in sales of PCs is still weighing down the Sunnyvale, Calif.-based company, which made $684 million from its PC processors product lines in the first quarter of 2002. In the flash memory market, AMD had made strides since last year's first quarter. The company took in $218 million in revenue from its flash memory products in the first quarter of this year, compared to revenue of $160 million in the same period last year. Intel reported earlier this week that it believes it lost market share in flash memory due to higher prices in the first quarter, and AMD said it expects to gain share in the second quarter. AMD and Fujitsu signed a memorandum of understanding in March to form a new flash memory company that would integrate both companies' existing flash memory businesses. AMD has said it needs to achieve operating expenses of $800 million in order to break even. The company managed to reduce operating expenses to $840 million in the first quarter, and expects to further reduce that number in the second quarter through the completion of previously announced layoffs. Tom Krazit