Advanced Micro Devices Posts a $157 Million Net Loss

The company’s chief executive, Rory Read, said he did not expect the personal computer industry to improve for several quarters.

A.M.D., which is a distant No. 2 to the top chip maker, Intel, said in a statement that it expected its restructuring actions to result in savings of $190 million next year. It expects to record a restructuring expense in the fourth quarter of about $80 million.

“It’ll bring earnings up, I guess, but you still have to ask how disruptive this will be and what roles are they cutting,” said Stacy Rasgon, an analyst at Bernstein Research. “The market is not going their way, and they’re not in a strong position.”

Last week, A.M.D. warned that its third-quarter revenue fell more than it had previously expected and that gross margins suffered from a $100 million write-down because of lower future growth of some products.

A.M.D. posted a net loss of $157 million, or 21 cents a share, compared with a profit of $97 million, or 13 cents a share, in the period a year earlier. Revenue dropped to $1.27 billion from $1.69 billion.

Mr. Read took over at A.M.D. last year promising to fix long-standing execution problems that have plagued the company. But A.M.D. has continued to lose money as well as market share to Intel and the graphic chip rival Nvidia.

“The trends we knew would reshape the industry are happening at a much faster pace than we anticipated,” Mr. Read told analysts in a conference call.

Looking for markets with faster growth than personal computers, A.M.D. said it planned to increase its focus on selling chips for communications, industrial and gaming applications. Mr. Read said those areas would grow to account for 20 percent of quarterly revenue by the fourth quarter of next year, compared with 5 percent now.

Like Intel, A.M.D., which is based in Sunnyvale, Calif., was caught flat-footed in recent years with the emergence and fast growth of mobile devices like Apple’s iPad.

A.M.D. and Intel have been slow to adapt their computer chip designs to mobile. But while Intel has poured its huge resources into efforts to catch up to smartphone chip makers like Qualcomm, A.M.D. has yet to define a clear mobile strategy.

Shares of A.M.D. closed at $2.62., down 5.4 percent, before it announced its results.

Advanced Micro Devices Reports Profit Down 40%

SUNNYVALE, Calif. (AP) — Trouble in the global economy dragged the chip maker Advanced Micro Devices’ profit down 40 percent in the second quarter, and the company warned Thursday that revenue would continue to be hurt through the summer.

“Overall weakness in the global economy, softer consumer spending and lower channel demand for our desktop processors in China and Europe made the closing weeks of the quarter challenging,” Rory Read, the president and chief executive of A.M.D., said in a statement.

A.M.D. is the world’s No. 2 maker of microprocessors, behind Intel. Mr. Read warned that though the company was acting to improve its performance, he expected headwinds to continue in the third quarter. A.M.D., which makes about a fifth of the world’s computer processors, said its gross margin, a measure of profitability, was 45 percent in the second quarter, compared with 46 percent last year.

Early this month, A.M.D., which is based here, slashed its second-quarter revenue forecast, citing weaker-than-expected sales in China and Europe and lackluster consumer demand over all.

Some analysts said that the largest issue for the company, other than weak demand for personal computers, was that Intel became very competitive on prices in late May and June.

A.M.D.’s net income tumbled to $37 million, or 5 cents a share, from $61 million, or 8 cents, a year earlier. Excluding one-time charges and gains, the company earned 6 cents a share, missing analysts’ expectations by a penny, according to data provider FactSet.

Revenue fell 10 percent to $1.41 billion, in line with analysts’ revised expectations. A.M.D. said computing services revenue fell 13 percent because of lower desktop sales in China and Europe.

The company’s stock fell 61 percent Thursday to close at $4.86.

A.M.D. said it expected third-quarter revenue to fall 1 to 3 percent from the second quarter.

Advanced Micro Devices Reports Profit Down 40%

SUNNYVALE, Calif. (AP) — Trouble in the global economy dragged the chip maker Advanced Micro Devices’ profit down 40 percent in the second quarter, and the company warned Thursday that revenue would continue to be hurt through the summer.

“Overall weakness in the global economy, softer consumer spending and lower channel demand for our desktop processors in China and Europe made the closing weeks of the quarter challenging,” Rory Read, the president and chief executive of A.M.D., said in a statement.

A.M.D. is the world’s No. 2 maker of microprocessors, behind Intel. Mr. Read warned that though the company was acting to improve its performance, he expected headwinds to continue in the third quarter. A.M.D., which makes about a fifth of the world’s computer processors, said its gross margin, a measure of profitability, was 45 percent in the second quarter, compared with 46 percent last year.

Early this month, A.M.D., which is based here, slashed its second-quarter revenue forecast, citing weaker-than-expected sales in China and Europe and lackluster consumer demand over all.

Some analysts said that the largest issue for the company, other than weak demand for personal computers, was that Intel became very competitive on prices in late May and June.

A.M.D.’s net income tumbled to $37 million, or 5 cents a share, from $61 million, or 8 cents, a year earlier. Excluding one-time charges and gains, the company earned 6 cents a share, missing analysts’ expectations by a penny, according to data provider FactSet.

Revenue fell 10 percent to $1.41 billion, in line with analysts’ revised expectations. A.M.D. said computing services revenue fell 13 percent because of lower desktop sales in China and Europe.

The company’s stock fell 61 percent Thursday to close at $4.86.

A.M.D. said it expected third-quarter revenue to fall 1 to 3 percent from the second quarter.