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AMD posts a $177m loss to end 2011
CHIP DESIGNER AMD posted a $177m loss for its fourth quarter of 2011, despite a marginal increase in revenue.
AMD endured another difficult year with new CEO Rory Read having to lay off 1,400 workers and deal with stagnating revenues. The firm managed to rake in $1.69bn for the three months leading up to 31 December 2011, $40m more than a year previously, however after all expenses were accounted for AMD ended up posting a $177m loss.
With AMD's poor fourth quarter performance, full-year 2011 results were significantly lower than a year previously. While full year revenue stagnated at $6.57bn, profit fell to $368m, a 56 per cent drop from 2010.
AMD's 2011 financials make for worrying reading, as the firm released its Llano processors and its next generation Bulldozer server chips. AMD has bet the farm on its CPU/GPU Fusion series of products and while Read said it shipped 30 million Fusion chips that clearly had little effect on AMD's bottom line.
AMD also took a stab at increasing its retail presence by rebranding memory modules. Today the firm announced its rebranded Patriot Memory modules are available in the UK.
With Intel announcing bumper financials last week and AMD's latest products failing to spark an upturn in its fortunes, once again AMD shareholders will have to look with hope towards the future. µ
Tags: Amd
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...AMD did just fine considering the FUBAR issues at TSMC and GloFo. They didn't give no chippes away at all they were sales constrained by TSMC and GloFo. They couldn't even release the 7900 series GPUs in Sept. as planned. They need to add penalty clauses in their contracts with GloFo and TSMC.
Doesn't matter how many million APUs/CPUs you sold if they're being given to the public at "pocket change" prices.
Higher ASPs are the only way to go, and to achieve that, you need a "competitive" product (Performance wise).
Unfortunately AMD is at the mercy of GloFo and TSMC both of whom had a tough transition to 32nm and 28nm respectively. This cost AMD big in 2011 in both CPUs and GPUs but they still managed a half billion dollars profit for the year, so all is not lost.
If they can get Trinity laptop APUs out by the end of June and Vishera out by Oct. then they should have a good 2012 in spite of a continuing world wide economic meltdown that simply refuses to abate.