AMD Revenues Hit by Supply and Demand Issues
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It was a tough quarter for chip vendor AMD (NYSE:AMD). AMD reported fourth quarter fiscal 2011 results late Tuesday that showed just how tough things have been.
For the fourth quarter, AMD reported revenues of $1.69 billion for a two percent year-over-year gain. For the full year, AMD's revenues came in at $6.57 billion, which is flat, year-over-year. For the fourth quarter, AMD suffered a net loss of $177 million and for the full year. Net Income was reported at $491 million.
Moving forward, AMD provided guidance for revenues to decrease 8 percent plus or minus 3 percent sequentially for the first quarter of 2012.
"Revenue was impacted by lower-than-expected GPU demand and a one-time issue that limited supply of the 45-nanometer desktop processors," Rory Read, AMD President and Chief Executive Officer said during the company's earnings call. "Working closely with our strategic foundry partner, we believe the 45-nanometer issues have been corrected, and we will see supply rebound in the first quarter."
Read added that overall progress in 2011 was tempered by execution challenges that impacted their supply. He noted that AMD has take steps to correct the issues and over the last two quarters, 32-nanometer yields and performance have steadily improved at their foundry partner Global Foundries.