AMD lose $611 million in Q1
From the expected 1.6-1.7 billion, AMD’s first quarter revenue is $1.233 billion. Since quarter four’s revenue of $1.773 billion, AMD have lost $611 million. AMD’s margins have also taken a knock the last few years, being 58% in 05, 36% in quarter four 06 and are currently sitting at 29%.
AMD had warned it was heading for a loss-making quarter, indicating a loss of around $250 million, which turned out to be not even half the final figure.
?After more than three years of successfully executing our customer expansion strategy and significantly growing our unit and revenue base, our first quarter performance is disappointing and unacceptable,? said Robert J. Rivet, AMD?s chief financial officer. ?We are aggressively addressing the issues that led to our significant revenue decline. We are aligning our business model, capital expenditures and cost structure with the goal of accelerating our return to profitability. Lastly, our customer relationships remain solid, reflecting their confidence in our strategic direction, current and new products, and technology roadmaps.?