AMD shrinks its loss

Chip company AMD turned in a net loss for its third financial quarter but says the current quarter will be flat, rather than depressed.

Revenues for the quarter rose to $1.62 billion, compared to $1.4 billion in the same quarter last year, while its net loss amounted to $118 million, compared to $128 million.

Sales of PCs to consumers, where AMD is particularly strong, have suffered in the usually buoyant third quarter, but other parts of its business mix, including server chips and graphics chips are showing signs of growth, according to CEO and president Dirk Meyer.

AMD will introduce a fresh set of graphics products next week, as we reported yesterday, as part of its continuing battle with graphics rival Nvidia.

He said: “AMD’s third quarter performance was highlighted by solid gross margin and a continued focus on profitability, despite weaker than expected consumer demand. Our strategy to deliver platforms with superior visual experiences continues to resonate.  We look forward to building on this momentum when we begin shipping our first AMD Fusion Accelerated Processor Units later this quarter.”

 AMD’s gross margin for the quarter was 46 percent.