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With Q1 earnings season in full flow, AMD looks like it’s got its work cut out for it. While the $611m loss includes $113m of charges related to the ATI acquisition, it still compares poorly with an operating profit of $259m in the same period last year. There was also a seven per cent drop in revenue over that period.
Intel meanwhile chalked up $1.6bn in profit against nearly £9bn revenue. This profit included a rather handy $300m reversal of previously accrued taxes. While revenue was slightly down on Q1 2006, net income jumped 19 per cent.
Robert J. Rivet, AMD’s chief financial officer, was suitably sombre. “After more than three years of successfully executing our customer expansion strategy and significantly growing our unit and revenue base, our first quarter performance is disappointing and unacceptable,” he said.
“We are aggressively addressing the issues that led to our significant revenue decline. We are aligning our business model, capital expenditures and cost structure with the goal of accelerating our return to profitability. Lastly, our customer relationships remain solid, reflecting their confidence in our strategic direction, current and new products, and technology roadmaps.”
The somewhat chirpier Intel president and CEO Paul Otellini said. "The strong momentum of our industry-leading Intel Core microarchitecture product family, combined with ongoing structural cost improvements delivered solid financial results in the first quarter. Our product strength is reflected in the fact that average selling prices for the quarter held up well in a very competitive environment."
