AMD aired its earnings for (calendar) Q4 2011 late Tuesday and the result was a clear miss. Versus much of the rest of 2011 [1][2][3], where it posted profits, Q4 saw a $177M USD net loss when the results were adjusted to the general acceptable accounting practices (GAAP), the U.S. accounting standard.
Revenue stayed constant from Q3 2011 at $1.69B USD. This is a fairly substantial miss from the analyst consensus earnings target of $1.71B USD [source].
Aside from a slightly depressed gross margin (down 1 percent), the net loss comes largely due to a set of charges (losses). AMD took a $209M USD impairment charge on its investment in the GlobalFoundries chip fab, a $24M USD payment to GlobalFoundries charge, and a $98M USD general restructuring charge. AMD began laying off some employees in Nov. 2011.
AMD warns that the situation will get worse, with weakening demand expected for H1 2012. It's predicting$1.56B USD in Q1 2012 revenue. Previously, analyst targets had hovered around $1.7B USD, but they've since been adjusted down to a slightly more optimistic $1.59B USD.
The chipmaker saw graphics revenue dip 10 percent, with mobile GPU sales down. This dip may be compensated in H1 2011 by the official availability of the Radeon 7000 HD series (codenamed Southern Islands). In the good news department, AMD's "computing solutions" department surged 7 percent in sales, keeping revenue steady from Q3 2011. AMD says its server and chipset sales have improved.
In total, AMD made a net income (annual profit) of $491M USD in 2011, up modestly from 2010, a critical turnaround year for the firm.