AMD has announced revenues for the third quarter of 2012 of US$1.27 billion, a net loss of US$157 million, or US$0.21 per share, and an operating loss of US$131 million.

The company reported a non-GAAP net loss of US$150 million, or US$0.20 per share, and a non-GAAP operating loss of US$124 million.

AMD also announced a restructuring plan designed to reduce operating expenses and better position the company competitively.

AMD's restructuring plan, a significant portion of which will be implemented in the fourth quarter of 2012, will include a workforce reduction and site consolidations.

AMD expects that the restructuring actions taken in the fourth quarter of 2012 will result in operational savings, primarily in operating expenses, of approximately US$20 million in the fourth quarter of 2012 and approximately US$190 million in 2013. The savings will be largely driven through a reduction of AMD's global workforce by approximately 15%, which is expected to be largely completed in the fourth quarter of 2012. The company currently estimates it will record a restructuring expense in the fourth quarter of 2012 of approximately US$80 million in connection with these actions.

AMD is also putting in place a business model to break even at an operating income level of US$1.3 billion of quarterly revenues. The company is targeting to achieve this by the end of the third quarter of 2013.

AMD achieved a gross margin at 31% in the third quarter of 2012, down sequentially due to an inventory write-down of approximately US$100 million primarily consisting of first generation A-series accelerated processor units (APUs), weaker-than-expected demand, which contributed to lower ASPs for the company's microprocessor products and lower utilization of the company's back-end manufacturing facilities.

By: DocMemory
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