So much for AMD's plan to become profitable again in late 2008. Despite posting an operational profit in Q3, AMD has dived back into the red with a staggering net loss of $1.424 billion for the fourth quarter.
Q4 revenue worked out to just $1.162 billion, down from $1.776 billion for the previous quarter and $1.77 billion a year before. Surprisingly, AMD's net losses actually decreased year-over-year: Q4'07 net losses added up to a whopping $1.772 billion. In both cases, a big portion of the figure came from AMD writing off "impairment of goodwill and acquired intangible assets" related to the ATI acquisition—non-material losses, in other words.
Those ATI write-offs worked out to $684 million last quarter, to which AMD added an "incremental write-down of inventory" for $227 million and a handful of other charges. As a result, AMD says it suffered comparatively smaller net losses of $418 million and operating losses of $260 million if one overlooks U.S. accounting guidelines. According to the Wall Street Journal, AMD has now written off about $3.2 billion in ATI-related impairment charges—that's over half of the $5.4 billion it paid for the graphics firm in 2006.
Looking ahead, AMD expects to complete its foundry spinoff in February. As for its outlook for the first quarter, the company writes, "In light of the current macroeconomic conditions, very limited visibility and continued corrections in the supply chain, AMD expects first quarter 2009 revenue to decrease from the fourth quarter 2008."