AMD records eleventh straight loss

 

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By Stuart Turton

Posted on 22 Jul 2009 at 11:21

AMD's woes continue as the company recorded its eleventh consecutive quarterly loss.

The chip maker recorded a net loss of $335 million during its second quarter. On the bright side, the loss represented a considerable improvement on the $1.92 billion the company mislaid in the same period last year.

The narrowing losses were put down to a series of job cuts that have seen the company lay off 1,100 jobs and slash the pay of its remaining employees. This included CEO Dirk Meyer and Chairman Hector Ruiz, whose pay took a 20% hit. The job cuts followed the 2,200 layoffs announced last year.

The cost-cutting measures are set to continue with AMD due to sell its handheld chip business to Qualcomm for $65 million and digital-TV chip business to Broadcom for $193 million.

In the meantime AMD is left pondering a tough economic environment which has seen revenues drop 13% to $1.18 billion from $1.36 billion last year. Nonetheless Meyer remains convinced the company can turn things around in the second half of the year.

"With the strong flow of new products and a leaner cost structure, coupled with the assumption of modest seasonal growth, we are positioned for stronger financial performance in the second half of this year," Meyer claimed on a conference call with investors.