AMD incures losses of 1.4 billion US Dollar in Q4/2008
In Q3/2008 AMD was about to reach the break-even point but in Q4 the manufacturer slid heavily into the red. A net loss of more than 1.4 billion US dollar faces a turnover of 1.1 billion dollar.
In Q4/2008 AMD has achieved a turnover of 1.162 bn. US dollar which is 34.6 percent less than in the previous quarter and 34.5 percent less than in the year-ago quarter. The net loss in Q4 was 1.424 bn. US dollar and the operating loss was 1.274 billion US dollar of which about 1 bn. US dollar are value adjustments such as the acquisition of Ati's graphics department (684 million US dollar) and the incremental write-down of inventory (227 million US dollar).
In the last financial year 2008 which ended on 27th Dec. 2008 AMD has generated a turnover of 5.808 billion US dollar but at the same time a net loss of 3.098 billion dollar. In comparison: In 2007 AMD generated a turnover of 5.858 billion US dollar and a loss of 3.379 billion.
The gross margin was only 23 percent in the 4th quarter though this figure also includes a depreciation of 20 percentage points for incremental write-down of inventory. The gross margin in Q3/2008 still added up to 51 percent (45 percent without the process technology license revenue).
The stock exchange did not react positively to these figures. In the early trading the AMD share loses more than 10 percent after the share had to deal with heavy losses during the week. But this could well be because the forecast for the traditionally weaker first quarter is rather poor. According to AMD a turnover below the revenue of the 4th quarter is to be expected. Thus AMD's revenue could drop under the billion limit for the first time in six years.
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