The Channel logo


By | Andrew Orlowski 19th January 2005 06:39

AMD profits disappear in a Flash

'Freaking dismal', says CEO

After dropping a bombshell on investors last Monday that its fourth quarter of 2004 would be a disappointment, AMD formally announced the numbers today.

AMD lost $30m on sales of $1.26bn in the final quarter of the year (and AMD's fiscal year). Despite processor sales rising 26 per cent over the corresponding period in the previous year, AMD's CEO, Hector Ruiz, said the Flash memory business, on which AMD relies for almost half of its earnings, was "freaking dismal".

The CPU side saw sales of $730m and profits of $89m. The entire year saw losses stablize and sales grow after a 2003 characterized by heavy losses. Sales in FY2004 were up from $3.52bn in 2004 to top $5bn, with $91.16m net income.

AMD shares crashed from $20 to $14.6 on the revelation last week of the poor performance of its flash memory division. AMD blamed intense competition with Intel. Intel has cut the prices of Nor memory aggressively in the past two quarters. ®

Related stories

Investors gut AMD on memory slip
Euro AMD Opteron server demand slows
Intel restructures around platforms
Intel's record Q4 run ends with profit drop
AMD unveils portable video player chip

alert Send corrections


George Osborne, photo: HM Treasury
shutterstock_183801788_container ship

Chris Mellor

The SAN growth glory days are well and truly over, so where next?

Tom Whipp

Insurance industry insider tells all
Crypto fingers


Michael Dell. Pic by Joi Ito
Cool Texas dude is just your average billionaire
The Seeing Eye by Valerie Everett, Flickr, CC2.0
Follow the money – or, at least, our projections
Boats storm girl photo via Nikolina Mrakovic
The puppets from Team America: World Police gather at a bar for drinks.