Wednesday, January 24, 2007
AMD posted a surprise quarterly loss on Tuesday amid a price war with Intel Corp. AMD also said its gross margin took a big hit in the fourth quarter due to falling prices for server processors, and it gave a revenue forecast for the first quarter that was short of Wall Street expectations.
Costs related to its $5.4 billion purchase of graphics chip maker ATI also weighed on results.
AMD's net loss for the fourth quarter ended December 31 was $574 million, or $1.08 per share, compared with a profit of $96 million, or 21 cents a share, a year earlier.
"The acquisition was an expensive proposition that took a toll on AMD's fourth-quarter numbers," said JoAnne Feeney, managing director of FTN Midwest Securities. "But one should not ignore the obvious increasing competition from Intel that lowered average selling prices and stopped AMD from gaining further share."
By: DocMemory
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