U.S. chipmaker Advanced Micro Devices Inc reported a bigger-than-expected adjusted loss and a steep fall in sales for the first quarter and said it expected weak demand for personal computers to continue for some time.
“It looks like the channel inventory dynamics that they have been struggling with for the past 2 quarters is continuing and their margins are under pressure,” Raymond James analyst Hans Mosesmann said.
Su, however, said she expects business to pick up in the second half of the year, pivoting hopes on the release of Windows 10 and new product offerings by the company.
The dense server system business, formerly known as SeaMicro, helps firms reduce power consumption and improve space efficiency for data centers.
The company said it recorded a charge of $75 million in the first quarter related to the sale of the business as well as an additional $12 million charge related to a restructuring plan last year.
AMD’s net loss widened to $180 million, or 23 cents per share, in the quarter ended March 28 from $20 million, or 3 cents per share, a year earlier.
Excluding items, AMD reported a loss of 9 cents per share, compared with the average analyst estimate of a loss of 5 cents, according to Thomson Reuters I/B/E/S.
AMD forecast current-quarter revenue to fall 3 percent, plus or minus 3 percent, from the first quarter.
The company’s shares were down 8.4 percent at $2.63 in trading after the bell.
(Reporting By Arathy S Nair and Lehar Maan in Bengaluru; Editing by Savio D’Souza and Saumyadeb Chakrabarty)(Reuters)