Chip firm AMD is facing a $75 million special charge following the announcement that it is closing its dense microserver business (formerly SeaMicro).
The charge is largely due to the impairment of intangible assets, which includes a $7 million cash payout.
The company entered the dense server systems market in 2012 when in acquired SeaMicro, which at the time built systems housing dozens of Intel Atom and Xeon processors connected to a shared storage and network fabric.
However, since then AMD has only released one new SeaMicro system: the SM15000.
AMD's Q1 2015 revenues were down 26 per cent year-on-year to £1.03 billion, and it reorded a net loss of $180 million, which converts to a loss per share of $0.23.
The total debt AMD faced at the end of the quarter was £2.27 billion, a $56 million increase from the prior quarter.
“Building great products, driving deeper customer relationships and simplifying our business remain the right long-term steps to strengthen AMD and improve our financial performance,” said Dr. Lisa Su, AMD president and CEO.
"Under the backdrop of a challenging PC environment, we are focused on improving our near-term financial results and delivering a stronger second half of the year based on completing our work to rebalance channel inventories and shipping strong new products.”
A number of AMD rumours and leaks have surfaced recently, such as the possibility of Samsung buying the company, and a slide containing possible details of a new X86 Zen 16 core processor were apparently leaked.