Updated from 4:50 p.m. EDT
SAN FRANCISCO --
Advanced Micro Devices
reported another massive loss in the second quarter, as hefty charges and sluggish sales weighed the company down.
The results included an $880 million writedown to the company's' consumer electronics business, announced last week. AMD said Thursday that it was divesting itself of the business, though it provided no details on whether the business was being sold to another company.
Share of AMD fell more than 6% in recent after-hours trading to $4.95.
The Sunnyvale, Calif., chipmaker posted a loss of $1.19 billion, or $1.96 a share, vs. a loss of $600 million, or $1.09 cents at this time last year.
Analysts were expecting a loss of 52 cents a share, excluding certain charges.
AMD's total revenue in the three months ended June 28 totaled $1.38 billion, up 0.5% year-over-year, and below the average analyst expectation of $1.45 billion.
Despite a "disappointing" financial quarter, AMD CFO Bob Rivet said customer adoption of new microprocessor and graphics chips have been strong and said the company was seeing increasing momentum across its businesses.
"In the face of challenging macroeconomic conditions, we remain committed to achieving operating profitability in the second half of the year based on the continued ramp of new products, increased market penetration of our differentiated solutions, and continued actions designed to reduce our breakeven point," Rivet said.
AMD said its microprocessor sales were flat year-over-year, and down 8% sequentially.
The second quarter marked the first three months in which AMD fielded its long-delayed Barcelona microprocessor for corporate servers. Earlier this week, AMD rival
reported a 25% increase in net income, with double-digit increases in sales of PC and server micorprocessors.
The company's graphics revenue, which includes graphics processors as well as video game console royalty revenue, was up 18% year-over-year and down 5% sequentially.
Revenue in the consumer electronics business, which makes chips for cell phones and digital TVs, declined 46% to $37 million, with an operating loss of $42 million.
Excluding the results of the consumer electronics business, AMD said it posted an operating loss of $143 million in the second quarter.
The company's gross margin was 52% excluding the discontinued business operations.
The company said it expects revenue to increase in line with seasonality in the current quarter, but didn't provide specific financial guidance. AMD is scheduled to host a conference post-earnings conference call with analysts Thursday.