AMD profits disappear in a Flash
Print story'Freaking dismal', says CEO
Posted in IT Channel, 19th January 2005 06:39 GMT
Free whitepaper – Why email fails
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
Free whitepaper – Exchange 2007 risks and mitigation strategies
Should your email live in the cloud: a comparative cost analysis
Hosted security IT manager's guide
Jump start your Application Security initiatives
Securing your Apache web server with a Thawte digital certificate
Sign up, sign up for The Register IT security newsletter
Former top Sun exec mourns end of a franchise
Win an HTC Touch Diamond2!
Disties braced for autumn reseller collapses