AMD announces $1.2-billion loss, appoints Dirk Meyer as CEO

Things weren’t looking up after AMD revealed plans to take a hit of more than $900 million for the past quarter, and today the company has announced the full extent of the damage.

On the upside, AMD had revenue of $1.349 billion for the second quarter, a drop of 7% compared to the first quarter but a rise of 3% compared to Q2 2007. The company also increased its gross margin from 34% in Q2 ’07 and 41% in Q1 ’08 to 52% last quarter, although that growth is largely due to the sale of 200-mm manufacturing equipment.

Now, for the bad news. AMD has posted a net loss of $1.189 billion for the second quarter, $920 million of which stems from “discontinued operations”—AMD says it has decided to “divest” its handheld and digital TV businesses, and it’s “classifying them as discontinued operations for financial reporting.” Operating loss was a less-intimidating $143 million, down from $214 million in Q1 and $396 million in Q2 ’07.

After yet another financially disappointing quarter, it’s no wonder that AMD’s board of directors has fired Hector Ruiz as CEO. Former President and Chief Operating Officer Dirk Meyer has taken the helm, while Ruiz is staying on as executive chairman. If you recall reports from last year, the rumor mill was already whispering that Meyer had been groomed to be the next CEO for some time. Meyer has been at AMD for about 12 years, and he was director of engineering on the original Athlon CPU.

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