AMD announces fourth quarter financial results
A few days behind Intel, AMD has finally unveiled its financial results for the fourth quarter of last year. As expected, the numbers aren't cause for celebration. Overall, AMD managed to rake in revenue of $1.77 billion, up from $1.33 billion in the third quarter. However, that figure includes data from the former ATI. Excluding this data, AMD's revenue only climbed to $1.37 billion.
Where things get really ugly is operating income: AMD lost a total of $527 million, compared to a gain of $119 million for the third quarter. AMD alone actually had an operating income of $63 million, but that gain was offset by losses of $13 million from the former ATI, acquisition-related costs of a whopping $550 million, and $27 million in stock-based compensation. The fact that AMD's gross margin dropped from 51% in the third quarter to 36% in the fourth quarter didn't help, either. On the upside, the company expects its revenue for the first quarter of this year to be between $1.6 and $1.7 billion—a decrease that's in line with Intel's expected drop from $9.7 billion revenue in Q4 2006 to $8.7-9.3 billion revenue in Q1 2007.