Advanced Micro Devices Inc. reported a greater-than-expected loss in the first quarter as the chip maker continued to struggle amid a fierce price competition with larger rival Intel Corp.
AMD said Thursday it lost $611 million, or $1.11 per share, in the first three months of the year. That compares with a profit of $185 million, or 38 cents per share in the same quarter a year ago.
AMD reported $1.23 billion in sales, a 7 percent decline from the $1.33 billion it rang up last year.
Analysts were expecting AMD to record a loss of 48 cents per share on $1.26 billion in revenue, according to a survey by Thomson Financial. Expectations varied wildly, with some analysts predicting a loss as steep as 82 cents a share.
The Sunnyvale, Calif.-based company recorded $113 million in charges during the recent quarter related to its acquisition of graphics chips maker ATI Technologies Inc. The charges brought down net income by 21 cents per share. The company also took $28 million in charges for employee stock-based compensation expenses, which further reduced net income by 5 cents per share.
Shares of AMD rose 37 cents, or 2.7 percent, to close at $14.28 on the New York Stock Exchange.
