AMD beats Street on income, revenue in 1Q

SUNNYVALE, Calif. (AP) — Chipmaker Advanced Micro Devices Inc. said Thursday that it had a net loss in the latest quarter, largely because of an accounting charge related to a revised supply agreement with its primary manufacturer.

Its net loss was $590 million, or 80 cents per share, compared with net income of $510 million, or 68 cents, a year earlier.

Excluding one-time charges, AMD had income of $92 million, or 12 cents per share. That's above the 9 cents expected by analysts surveyed by FactSet.

Last month, the Abu Dhabi government agreed to acquire full control of GlobalFoundries, which AMD spun off in 2009 in an effort to cut costs. AMD remains a key customer, but the revised deal gives GlobalFoundries more opportunities to make chips for other customers, including AMD rivals. AMD took a $703 million charge in the first quarter.

AMD had revenue of $1.59 billion, down 2 percent from $1.61 billion a year earlier but above expectations of $1.56 billion. Last year's quarter had an extra week.

The company said its computing solutions unit had flat revenue, while the graphics segment saw a 7 percent decrease in revenue because of lower demand for desktop and mobile graphics.

In the current quarter, AMD expects revenue to increase up to 6 percent from the first quarter. That means revenue of $1.59 billion to $1.68 billion. Analysts were expecting $1.59 billion.

AMD's stock rose 5 cents to $8.02 in extended trading Thursday after the results came out.