AMD made a first-quarter loss for the three months ending 27 March and is now selling off its struggling memory chip business, which saw sales slump almost 30% by value.
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The company reported an operating loss of $46m (£25.5m) on sales down 1% at $1.2bn (£677m). For the same quarter last year, AMD made a £33.8m operating profit.
Robert Rivet, AMD chief financial officer, said, “The Flash memory market continued to experience industry-wide oversupply and strong pricing pressure. We experienced a rise in unit shipments, but our average selling price declined significantly, resulting in weaker than expected sales.”
Despite seeing an increase in volumes, the company’s memory division saw its losses reach $110m (£61.1m).
A sell off via a proposed $600m (£333m) initial public offer (IPO) will allow AMD to concentrate on its profitable processor business.