As warned, AMD showed a huge loss of $128.4 million on turnover of $631.6 million for its first financial quarter of 1999.
Turnover dropped by 20 per cent from its last quarter, when AMD managed to turn in a net profit of $22.3 million.
But compared to the same quarter last year, AMD managed to show an increase in turnover of 17 per cent, when it also posted a loss.
"The best thing that can be said about the first quarter is that it's over," said Jerry Sanders, chief executive of AMD.
"The significant decline in revenues reported by AMD in the first quarter was almost entirely due to previously reported AMD-K6-2 microprocessor yield issues," he added.
"The large revenue decline in the face of high fixed costs and record spending on research and development of $160 million in the quarter precipitated the unprecedented loss," Sanders said.
Sanders claimed that improvements in March and in the current quarter to date will mean a sharp increase in unit production in the current quarter.
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