Filed under: Earnings reports, Deals, Intel (INTC), Advanced Micro Dev (AMD)
AMD (NYSE:AMD) announced its sixth straight loss. For the first quarter of 2008, the company reported a net loss of $358 million, or 59 cents a share, compared with a net loss of $611 million, or $1.11 a share, for the year-earlier period.
MarketWatch writes “Revenue was $1.5 billion, up from $1.23 billion for the year-ago period. Analysts had expected the chipmaker to report a loss of 48 cents a share on revenue of $1.52 billion, according to FactSet Research.”
The company’s survival as an independent company remains at stake. The firm stated that second quarter results would be down.
AMD still carries long-term debt of over $5 billion and with operating losses it remains difficult to see how the company can attack an amount of that magnitude while still investing aggressively in R&D. More massive rival Intel (NASDAQ:INTC) has the balance sheet and cash flow to continue to launch new chips, many of which have features better to those of AMD products.
AMD might have only two choice now. One would be to sell the company to a more successful chip operation like Nvidia (NASDAQ:NVDA). The other is to auction off its graphics chip operation ATI, and hope that it can get enough money to help take down a big portion of its long-term debt obligations.
Either way, AMD is unlikely to look that same as it does now by the end of the year.
Douglas A. McIntyre is an editor at 247wallst.com.
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