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AMD posts huge first quarter loss

AMD posts huge first quarter loss

-- Advance Micro Devices (AMD) recently reported a net loss of $US56 million on sales of $US541 million for its first quarter, which ended March 29.

The company said AMD's revenues in the first quarter declined by 12 per cent from the previous quarter, which ended December 28, 1997, and by 2 per cent from the first quarter a year ago.

For the same quarter last year, AMD had reported a return to profitability with a $US12 million net income on sales of $US551.9 million.

"The first quarter of 1998 was an unusually difficult one for AMD," Jerry Sanders, AMD chairman and chief executive officer, said in a statement.

During the most recent quarter, AMD was impacted by the rough and tumble of a worldwide semiconductor industry hurt by excess capacity in memory chips. This led to severe price pressure, aggressive inventory reduction programs by customers, and weak demand in certain Asian economies -- notably Korea and Japan, AMD said.

These conditions contributed to a 9 per cent aggregate decline in revenues from AMD's three non-microprocessor businesses -- the Communications Group, the Memory Group and the programmable logic company Vantis, the company said.www.amd.com


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