AMD reports results, CEO changed
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AMD (NYSE:AMD) today reported second quarter 2008 revenue of $1.349 billion, a 7% decrease compared to the first quarter of 2008 and a three percent increase compared to the second quarter of 2007. As part of its previously communicated review of its non-core businesses, AMD decided to divest its Handheld and DTV product businesses, and therefore is classifying them as discontinued operations1 for financial reporting.
The company has been under tremendous pressure to perform after its recent snafu’s. The Quad-Core Barcelona CPU’s were pulled from the market as AMD found a serious bug in the processor. Intel meanwhile has been marching along forging its leadership in the quad core market segment.
In an attempt to try something new to change AMD’s fortunes, the company today announced a change of guard. CEO Hector Ruiz is out and its board of directors elected President and COO Dirk Meyer as the company’s new chief executive officer.
In the second quarter of 2008, AMD reported a net loss of $1.189 billion, or $1.96 per share. For continuing operations, the second quarter loss was $269 million, or $0.44 per share, and the operating loss was $143 million. The results for continuing operations include a net favorable impact of $97 million, or $0.16 per share as described in the table below. Loss from discontinued operations was $920 million, or $1.52 a share, including asset impairment charges of $876 million, or $1.44 a share.
AMD shares were down 7.36% after market on the announcement.
