AMD posts $177m loss as GPU shipments decline and charges mount

AMD posted a net loss of $177m in the fourth quarter and predicted that revenue will drop by around eight per cent at the start of 2012, as the firm struggles to turn around its fortunes.

The chip maker took a number of financial hits during the quarter including a $209m charge relating to its stake in Globalfoundries, a semiconductor provider, and a restructuring charge of $98m.

Shipments of mobile graphics processor unit (GPUs) were down by five per cent quarter-on-quarter and 10 per cent annually, generating $382m in revenue.

AMD's Computing Solutions segment, which accounts for microprocessors, chipsets and embedded processors faired slightly better.

Revenue rose by seven per cent year-on-year to $1.3bn, boosted by sales of mobile processors and chipsets.

Rory Read, president and chief exectuive of AMD, had initiated a restructuring plan at the back end of 2011 and despite shedding 1,200 jobs in the lead up to Christmas he remained bullish.

"We continued optimising our financial model in 2011, consistently delivering operating income and creating the foundation for sustained success. We begin 2012 clear on our priorities and opportunities," he said.

"We are building an AMD that consistently delivers on its commitments."

For the year ending 31 December 2011, AMD reported a total revenue of $6.57bn, a 2.6 per cent increase from the previous year.

The latest results will go down badly with investors, especially with arch-rival Intel posting a mammoth 24 per cent bump in profits for the same period.

AMD will be hoping that sales improve when it releases its new range of dual-core and quad-core processors, code-named Trinity, later this year.

These chips will allow manufacturers to build thinner laptops. They also consume half the power of the firm's current A-series laptop chips.