Advanced Micro Devices (NYSE: AMD) posted a huge loss at -$3.06 EPS after a $2.89 charge. AMD’s operating GAAP loss was $1.678 Billion, but the company said its non-GAAP loss was -$9 million. The company is claiming gross margins of 44%, up from 41% last quarter. Revenues were $1.77 Billion versus $1.79 Billion estimates.
- Its guidance is not precise as it merely discusses a seasonal slowdown: "In the seasonally down first quarter, AMD expects revenue to decrease in line with seasonality."
Investors were hoping for a broader restructuring and a better plan for turning around its operations. It doesn’t look like Hector Ruiz is letting go of his control yet. That is a mistake, but we don’t get to run the company there. The good news is that this could have been much worse, and margins were actually above expectations. Maybe that’s all that Wall Street needs to hear.
AMD shares were down 3.5% in the normal session to close at $6.34. In after-hours trading it looks like shares are all over the place. We saw shares down 2% initially, but then the came back to flat, and now shares are up about almost 2% at $6.47.
Jon C. Ogg
January 17, 2008
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