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Advanced Micro Devices cut its fourth-quarter loss, but not as sharply as Wall Street had hoped, as the chip maker absorbed a big charge for the falling value of an acquisition.
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CNBC.com |
AMD is suffering, in part, from the same affliction that has caused bigger rival Intel [INTC
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] and software titan Microsoft [MSFT
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] to announce layoffs and post steep drops in quarterly profits. Evaporating sales of personal computers have sapped demand for the chips and software that go into those machines.
Sunnyvale, Calif.-based AMD said Thursday that it dialed back its net loss to $1.4 billion, or $2.34 per share, in the latest period. The loss was $1.8 billion, or $3.06 per share, in the fourth quarter of 2007.
AMD keeps paying heavily to write down the value of its 2006 acquisition of ATI Technologies, a maker of graphics chips that AMD bought for $5.6 billion. After several write-downs, AMD now believes ATI is worth less than half that. AMD took a $684 million charge in the latest period to write down ATI's value. That charge increased AMD's loss by $1.12 per share.
Excluding that and other one-time charges, AMD lost 69 cents per share, which was wider than the 54 cents per share predicted by analysts polled by Thomson Reuters.
Sales [AMD
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] fell 33 percent to $1.16 billion, short of the average analyst estimate for $1.2 billion in revenue.
AMD shares lost 5 cents in extended trading after the results were announced.
The stock had fallen 23 cents, or 10.2 percent, to close at $2.02 during the regular trading session, when AMD shares were hurt by the troubles Microsoft revealed in its earnings announcement.
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