AMD has reported heavy fourth quarter losses.

The company reported an overall 35 per cent decrease in revenue for 2008, with Q4 revenue plummeting 28 per cent. The struggling chip making giant recorded staggering fourth quarter losses of $1.4 billion, while 2008 net fiscal losses reached approximately $3 billion. However, AMD still managed to generate positive revenue of $5 billion during the past year.

"Although industry visibility is poor, our priorities remain clear and achievable," explained AMD CEO Dirk Meyer. "We remain focused on further reducing our breakeven point through targeted restructuring actions while ensuring we execute our highly-competitive product and technology roadmaps," added Meyer.

The optimistic CEO also detailed future plans for the Foundry Company in New York state.

"We made significant progress toward the creation of 'The Foundry Company' in the quarter, and anticipate closing the transaction in February. We expect our ongoing restructuring actions and asset smart strategy, combined with the strength of our innovative product offerings, will leave us well positioned for a global market recovery," said Meyer.

As IT Examiner previously reported, the global economic recession has forced AMD to reduce its workforce by at least 9 per cent and implement wide-ranging pay cuts.

"Beginning in February, I will be taking a temporary reduction of 20 percent in base salary. In the US and Canada, we will implement similar salary reductions of 15 percent for VPs, 10 percent for all other non-overtime eligible employees, and 5 percent for all overtime-eligible employees. Outside North America, I am asking all AMDers to take comparable pay cuts," wrote Meyer in an internal memo.

It should be noted that AMD's downward spiral prompted Moody's to downgrade the firm's corporate rating in December 2008, citing continued weak demand for end markets as a justification for its revision.

"As a result, Moody's believes it is likely that AMD will continue to lose money and remain free cash flow negative during 2009," said the company. However, the investment house noted "the negative outlook rating could be stabilised over time if AMD demonstrates a sustained return to profitability and positive cash flow". X

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