A weak first quarter has yielded a sixth consecutive quarterly loss at AMD, with the struggling chipmaker posting revenue of $1.51bn for its first fiscal quarter of 2008, ended March 29, and a net loss of $358m.
The bad results were in line with analyst forecasts. AMD had warned the financial community last week that it would miss earnings expectations by about $100m, blaming poor sales across all segments of its business.
A few days after last week's earnings warning, the company's chief technology officer Phil Hester stepped down, adding to the bad news. AMD had been hoping to turn things around by its second quarter. On Thursday it said it was hoping to be profitable again by year's end.
AMD is pinning some of its turnaround hopes on its upcoming 45-nanometre processors, which are due to begin shipping in the second half of this year. The company is readying a server chip, code-named Shanghai, as well as a desktop processor, named Deneb.
The company also expects to boost server sales in the second quarter, by which time a third major vendor will begin selling servers based on AMD's quad-core Opteron processors, the company said. AMD did not name the vendor; the chips are already sold by companies such as Dell and HP.
AMD's bottom line may also have been hurt by delays with its quad-core Opteron processor, code-named Barcelona. It was supposed to ship last September, but a technical glitch pushed back the chip's rollout until the end of the first quarter.