AMD's fourth quarter financials released

AMD has released its fourth quarter results for 2002, and they're not pretty.
SUNNYVALE, CA -- January 16, 2003 --AMD (NYSE:AMD) today reported sales of $686,430,000 and a net loss of $854,740,000 for the quarter ended December 29, 2002. The net loss amounted to $2.49 per share. Excluding the effects of restructuring and other charges to show the company’s results from ongoing operations, the fourth quarter net loss was $235,145,000, or $0.68 per share.

Fourth quarter sales declined by 28 percent from the fourth quarter of 2001 and increased by 35 percent from the third quarter of 2002. In the fourth quarter of 2001, AMD reported sales of $951,873,000 and a net loss of $15,842,000, or $0.05 per share.

Even when you only look at the results from AMD's ongoing operations, a net loss of $235 million on sales of only $686 million casts a rather dark cloud over the company's financial position. That overall sales for 2002 were down 31% from 2001 hurts, too. Really, the only silver lining is that Q4 sales for 2002 were up 35% from Q3. That's not much to cling to.

AMD held a conference call to announce the quarterly financial results, but that call also yielded a few tasty nuggets regarding what's down the road in 2003. Below, I've paraphrased some highlights from AMD Zone's notes on the conference call.

  • AMD has completed half of the job cuts it has planned. Another 1,600 employees will get pink slips this year.
  • Fab 30 in Dresden is on track for 0.09-micron production in Q4 of this year.
  • Barton will appear in February, Athlon64 in April.
  • Barton will have a 333MHz front side bus.
The dialog of the conference call's question period also seems to indicate that, while AMD expects Barton to be available in volume in February, volume shipments of Athlon64 and Opteron processors aren't expected until the second half of the year. Likely because of limited initial volumes, AMD also doesn't expect its 64-bit processors to have a significant impact on revenues until the second half of the year.

If Hammer won't impact revenues until the second half of the year, AMD may continue to bleed red ink through the first two quarters. The Q&A section of the conference call mentions that AMD will bear the bulk of its restructuring charges in Q1 and Q2 of this year, with the $330 million Q4 restructuring charge representing only "a little bit" of the overall restructuring charge.

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