AMD posted its fourth quarter results today, and it wasn’t happy news. The chipmaker lost $1.4 billion over the three month period, the ninth quarter in a row that its final results were in the red.
The $1.4bn is just a part of the more than $5 billion that AMD lost in 2008. The loss has hit the company hard, as analysts were struck by a much wider margin to profitability than they’d been expecting: the stock has dropped a further three and a half percent in after hours trading to $1.95, down more than 75% from a year earlier.
AMD isn’t the only manufacturer struggling, however, as Intel plans to close five of its own fabrication plants and saw profits drop 90% over a year ago.
Hopefully the company can turn it around; strong changes have been made in recent weeks and months, from spinning off chip fab plants to selling its handheld gaming division to Qualcomm. Unfortunately, it hasn’t been enough to keep up with the down-revving economy and weakened demand from consumers.