AMD sells family silver after poor results

AMD Analyst Day '15AMD is selling most of its assembly and testing operations in China and Malaysia in a bid to save cash after poor results.

The chipmaker said it will sell 85 percent of its assembly, test, mark and pack operations in Suzhou, China and Penang, Malaysia to China’s NFME for $320 million.

The company also said it would create a joint venture with NFME as part of the deal, to which it will contribute 1,700 employees. It said it did not plan to cut any more jobs.

AMD earlier this month said it would cut five percent of its global workforce. It had 9,700 employees globally, according to its annual report in February.

The company reported its fifth straight fall in quarterly revenue and forecast current quarter revenue that fell short of analysts’ average expectations.

Chief Executive Lisa Su said that PC demand, particularly in the consumer market, continues to be somewhat muted.

AMD posted a net loss of $197 million in the third quarter ended September 26 compared with net income of $17 million a year earlier.  Revenue fell 25.8 percent to $1.06 billion.

Analysts on average had expected a revenue of $995.9 million.

AMD forecast current quarter revenue to fall 10 percent. The midpoint of the range translates to about $955 million, which was short of analysts’ estimate of $996.3 million.