Advanced Micro Devices (AMD) reported a fourth-quarter
net loss Tuesday on weak sales of graphics chips and
charges related to a restructuring.
The company announced revenue for the fourth quarter
of 2011 of $1.69 billion, net loss of $177 million, or
$0.24 per share, and operating income of $71 million.
The company reported non-GAAP net income of $138
million, or $0.19 per share, and non-GAAP operating
income of $172 million. Fourth quarter non-GAAP net
income excludes an impairment of AMD's investment in
GLOBALFOUNDRIES of $209 million, restructuring charges
of $98 million, the loss from discontinued operations
of $4 million, the amortization of acquired intangible
assets of $3 million and a loss on debt repurchase of
$1 million.
AMD's graphics segment revenue decreased five percent
sequentially and 10 percent year-over-year. The
sequential decrease was driven primarily by a decline
in mobile graphics processor unit (GPU) shipments,
partially offset by a seasonal increase in game
console revenue. The year-over-year decrease was
primarily driven by decreased desktop and Add-in Board
(AIB) graphics revenue. The decline resulted partly
from the hard-drive shortage caused by flooding in
Thailand, which reduced demand for add-in graphics
boards, said CEO Rory Read on a conference call.
AMD is on track to launch new laptop chips code-named
Trinity by midyear.
"With the next-generation product Trinity we are well
ahead of the pace," Read said. The chips will enable
thinner laptops and better performance-per-watt than
their predecessors, he said.
AMD has said Trinity chips will come in dual- and
quad-core options, and give the same performance but
consume half the power of its current A-series laptop
chips.
The restructuring efforts will help AMD to fund new
opportunities in low-power computing, cloud computing
and emerging markets, Read said.
The company's Computing Solutions segment revenue
increased two percent sequentially and seven percent
year-over-year. The sequential increase was driven by
double digit growth in Server and Chipset revenue.
The year-over-year increase was driven by higher
mobile processor and Chipset revenue.
"AMD shipped more than 30 million APU's in 2011,
resulting in record annual notebook revenue," said
Rory Read. "The unmatched combination of computing
and graphics capabilities in our low-power 'Brazos'
platform has made it our fastest ramping platform
ever, paving the way for continued growth in key
segments and geographies. Our server business has
re-gained momentum, delivering two consecutive
quarters of strong sequential growth.
We continued optimizing our financial model in 2011,
consistently delivering operating income and creating
the foundation for sustained success. We begin 2012
clear on our priorities and opportunities. We are
building an AMD that consistently delivers on its
commitments."