Thread: Chip maker AMD still in the red
Chip maker AMD still in the red
Chip maker Advanced Micro Devices has reported its sixth quarterly loss in a row as it continues to lose market share to its rival Intel.
AMD lost $358m (£180m) between January and March, even though sales were up 22% on the same period a year ago. The firm had warned recently that sales were weak across all product lines.
AMD's fortunes are in stark contrast with that of Intel and other tech companies, which have reported robust earnings in recent weeks. The company recently announced that it would cut 10% of its global work force, with a loss of about 1,600 jobs.
Chief executive Hector Ruiz said AMD would be revealing plans on how to restructure the company further "in the near future".
AMD is still trying to catch up with Intel's latest technical advances, shrinking micro chips to 45 nanometre manufacturing.
On Tuesday, Intel had reported a 12% drop in profits to $1.44bn, but predicted "healthy demand" for its processors.
Strong forecast at Sandisk
AMD's poor results were also in stark contrast with profits announced by Sandisk, the world's largest maker of memory chips.
While the prices of memory chips continued to fall, the company announced profits of $17.9m during the first three months of 2008, a recovery from a $575,000 loss during the same period a year earlier.
Sandisk chief executive Eli Harari said the average price per megabyte had fallen 61% during the past year, but predicted that there would be only a "moderate" decline in prices in the months ahead.
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