AMD falls on disappointing results, downgrade(10:15 am ET)
SAN FRANCISCO (MarketWatch) -- Shares of Advanced Micro Devices Inc. (AMD: news, chart, profile) fell more than 6% to $2.44 in early trades on Friday after the chipmaker reported disappointing results for the third quarter and issued a revenue forecast that was also well below expectations. AMD said Thursday afternoon that it will layoff about 15% of its workforce in a cost cutting move and work to reduce its reliance on the PC sector. Stacy Rasgon of Bernstein Research downgraded the stock to a market perform rating on Friday morning following the results. "We had held out hope that some sort of upside might be forthcoming; however after the report we have no further confidence that any aspect of our prior structural thesis (margin accretion, cash flow, and balance sheet deleveraging) will play out in the foreseeable future," he wrote, adding "Indeed, we now see the prospect for structurally lower margins, as well as cash burn." AMD shares are now at their lowest level since early 2009.
AMD swings to loss, laying off 15% of workforce(4:36 pm ET)
SAN FRANCISCO (MarketWatch) -- Advanced Micro Devices (AMD: news, chart, profile) reported a deep net loss for the third quarter on Thursday afternoon, and announced a restructuring program that will result in the layoffs of 15% of its total workforce, or about 1,770 people. "It is clear that the trends we knew would re-shape the industry are happening at a much faster pace than we anticipated," CEO Rory Read said in a statement. The PC chipmaker reported a loss of $157 million, or 21 cents a share, for the third quarter compared to earnings of $97 million, or 13 cents a share, for the same period last year. Adjusted net loss was 20 cents a share. Analysts were expecting a loss of 13 cents a share for the period. Revenue of $1.27 billion was in line with a pre-announcement by the company last week. AMD shares were up 1% in after-hours trading on Thursday.
