Chips are down for AMD in Q4

AMD reported an operating loss of over US$500million last week for its 2006 fiscal fourth quarter.

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By  Administrator Published  February 1, 2007

The chipmaker's results were impacted by costs associated with its US$5.4 billion acquisition of graphics processor manufacturer ATI Technologies and its price war with rival Intel.

AMD posted revenue for FYQ4 - ended December 31 - of US$1.77 billion, which was down on the US$1.84 billion it made a year ago, but up on the US$1.74 billion average Wall Street forecast.

The world's number two chipmaker made an operating loss of US$527million, in stark contrast to profit of US$96million for the same period the year before.

The results included a charges of US$550million related to the acquisition and integration of ATI.

AMD's price war with Intel affected sales of its server processors in particular, with revenue flat and the average selling price down quarter-on-quarter.

However, AMD claimed that it had continued to gain unit share in the quarter.

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