AMD announced earnings today, it was bad but even after the announcement the stock went up 22 cents.
AMD said Thursday it lost $611 million, or $1.11 per share, in the first three months of the year. That compares with a profit of $185 million, or 38 cents per share, in the same quarter a year ago.
The company's gross margin percentage plunged from 58 percent last year to just 28 percent in the recent quarter. AMD blamed the decline on significantly lower microprocessor unit shipments, selling prices and the inclusion of ATI's operations, which generally have had lower margins. Excluding one-time charges, the story wasn't much better, as the gross margin comparison was 59 percent versus 31 percent.
A high-flier just a year ago, AMD's stock has plummeted amid signs a resurgent Intel is stealing back market share and forcing AMD to cut deeply into its own profit margins with equally severe price cuts to try and sustain its hard-won gains.
Investors are also concerned about AMD's ability to pay for the $5.6 billion ATI acquisition while still spending heavily to add manufacturing capacity and transition to a new chip-making process.
AMD said Thursday it lost $611 million, or $1.11 per share, in the first three months of the year. That compares with a profit of $185 million, or 38 cents per share, in the same quarter a year ago.
The company's gross margin percentage plunged from 58 percent last year to just 28 percent in the recent quarter. AMD blamed the decline on significantly lower microprocessor unit shipments, selling prices and the inclusion of ATI's operations, which generally have had lower margins. Excluding one-time charges, the story wasn't much better, as the gross margin comparison was 59 percent versus 31 percent.
A high-flier just a year ago, AMD's stock has plummeted amid signs a resurgent Intel is stealing back market share and forcing AMD to cut deeply into its own profit margins with equally severe price cuts to try and sustain its hard-won gains.
Investors are also concerned about AMD's ability to pay for the $5.6 billion ATI acquisition while still spending heavily to add manufacturing capacity and transition to a new chip-making process.