US chip maker Advanced Micro Devices Inc reported a quarterly loss as it grapples with a dip in computer sales and warned it may be too early to say the technology market has hit bottom.
“I don't know how anybody can say that we hit bottom given the continued uncertainty that we have in the macroeconomic climate,” said AMD Chief Executive Dirk Meyer on a conference call. “As a result of that, I would say that we are being cautious on our outlook.”
Last week the CEO of Intel Corp, AMD's larger rival and the world's biggest microprocessor maker, suggested there were signs that the bottom in the PC market segment had been reached and the worst was behind it in terms of inventory and demand.
AMD's CEO was more cautious, saying outlook for the second quarter was “awfully hard to call.”
The company did say revenue from its core microprocessor business would fall in the second quarter from the first quarter figure of $1.18 billion, citing macroeconomic conditions and historical seasonal patterns.
That means AMD will record a loss for the second quarter, as Chief Financial Officer Bob Rivet said the company needs $1.3 billion in revenue per quarter to break even.
AMD, the No. 2 microprocessor company, reported a first-quarter loss of $416 million, or 66 cents per share, compared with a loss of $364 million, or 60 cents per share, in the year-ago quarter.
Adjusted for certain items, it reported a loss of 62 cents per share. Wall Street had forecast a loss of 63 cents per share, on average, according to Reuters Estimates.
AMD, which recently split its operations into chip design and manufacturing arms, reported revenue of $1.18 billion, a 21% drop from a year ago, but ahead of analysts' average estimate of $983.8 million. (Reuters)