reported on Intel's
Q4 2007 earnings. The chip giant generated revenue of $10.1 billion USD,
operating income of $2.2 billion USD and net income of $1.9 billion USD.
Despite Intel's performance for the quarter -- which
outpaced Q4 2006 by a wide margin -- investors still drove the stock price for
the company down 12 percent.
It's now AMD's turn to show its books and the results don't
look very promising. The Sunnyvale, California-based company reported Q4 2007 revenue
of $1.770 billion USD, a net loss of $1.722 billion USD and an operating loss
of $1.678 billion USD.
For all of 2007, AMD recorded revenue of $6.012 billion USD
and a net loss of $3.379 billion USD. AMD also reported that ATI, which it purchased in 2006 for $5.4
billion USD, is now worth 30 percent less.
"We were close to break-even operationally for the
quarter, reducing our fourth quarter non-GAAP operating loss to $9 million. We
improved gross margin by three points sequentially, driven by increased
shipments of new products, higher average selling prices and cost containment
actions," said Robert J. Rivet, AMD CFO Robert Rivet. "We shipped a
record number of microprocessor units in the quarter, including nearly four
hundred thousand quad-core processors."
As is the case with most tech companies, AMD expects
earnings to take a dip during Q1 2008 -- the first quarter is traditionally a
slow period for tech manufacturers.
In November 2007, AMD received a cash infusion from Mubadala
Development Company, a United Arab Emirates (UAE) government-funded investment
firm. Mubadala took an 8.1
percent stake in AMD valued at $622 million USD.
At the time, AMD Chairman and CEO Hector Ruiz was delighted
in the investment stating, "This investment strengthens AMD’s ability to
deliver customer-centric innovation and choice to the marketplace, creating
greater value for all of our shareholders."
AMD will need all the help it can get to push forward its
quad-core Phenom and Opteron processors. AMD has plans to ramp
up 45nm chip production during the first half of 2008 while 32nm parts are
scheduled to arrive in 2009.