Computer chip maker Advanced Micro Devices, Inc. (AMD) today reported sales of $1.2 billion and an operating loss of $46 million for the quarter ended March 27, 2005. The first quarter net loss of $17 million amounted to $0.04 per share.
First quarter sales decreased 1% compared to the first quarter of 2004. The first quarter gross margin was 34% compared to 41% in the fourth quarter of 2004. AMD said the decrease was due to "a weak flash memory pricing environment".
Robert Rivet, CFO at AMD said,
"Our microprocessor business delivered record sales in what is typically a seasonally down quarter, driven by increased sales across all product categories,. We continued to gain momentum with year-over-year sales growth of 31 percent, highlighted by AMD Opteron and AMD Athlon 64 processor sales, each of which more than doubled from a year ago. The Flash memory market continued to experience industry-wide oversupply and strong pricing pressure. We experienced a rise in unit shipments, but our average selling price declined significantly, resulting in weaker than expected sales."
AMD's report that their manufacturing conversion for processor products from 130 to 90 nanometers is ahead of schedule and yields are higher than planned. AMD hope the higher unit capacity will provide them the ability to support fast growing customer demand across all product ranges.
AMD also expects quarter two to be "typically, seasonally down".
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