Beset by sinking prices for microprocessors and the cost of acquiring graphics chip company ATI, Advanced Micro Devices has reported a fourth-quarter loss of $574 million, down from a profit of $96 million for the same quarter last year.
The loss came despite rising revenue and an increasing slice of market share compared to rival Intel. Excluding the charges of acquiring ATI and paying stock-based compensation, AMD posted $63 million in profit compared with $272 million last year. AMD's revenue rose from $1.35 billion for the quarter last year to $1.37 billion, excluding ATI revenue. Including ATI, revenue it was $1.77 billion.
AMD executives insisted they were positioned for success in 2007, pointing to their acquisition of ATI in October and a rise in quarterly revenue -- including the ATI deal -- of 31 percent from the fourth quarter of 2005.