AMD said late Tuesday it swung to a fourth-quarter loss due to charges related to its purchase of ATI Technologies - a good cover for an obviously lousy quarter. AMD reported a fourth-quarter net loss of $574 million, or $1.08 a share, compared with net income of $96 million, or 21 cents a share, a year ago. Sales were $1.77 billion vs. $1.84 billion a year ago -- matching Wall Street's estimate. And that's including ATI.
Excluding the ATI Tech deal, AMD said its operating income was $63 million on sales of $1.37 billion compared with operating income of $272 million on sales of $1.35 billion. AMD offered a soft sales forecast for the first quarter of $1.6 billion to $1.7 billion as if ATI isn't expected to make sales.
Some CC highlights:
- Hector Ruiz "spoke from the gut" and in a predictable AMD manner, called Intel a monopoly on a down quarter. It's always good to have a monopoly to blame whenever you need one.
- Hector admitted that they forced Intel to be "efficient" and were caught off guard.
- AMD promised to focus on cost and shift product mix as a way to fight the ASP decline
- AMD will not bundle products, unlike intel. OEM platform design bundle offering only.
- Quad Core server out in summer and expected to get back "perform, perf/watt crown"
- Looks like AMD will lose more server share as they shift to 4P
Generally it was a gloomy conference call with AMD nothing much to offer in easing investor concerns.