AMD Posts Q2 Loss, Shuffles Executives

July 18, 2008 8:06 p.m. EST

Sunnyvale, CA (AHN) - Advanced Micro Devices reported a larger than expected second quarter loss, sparking a 12 percent sell-off in the stock on Friday.

After the session close on Thursday, the chipmaker said it lost $1.19 billion or $1.96 a share in the second quarter, compared to a $600 million loss or $1.09 a share the period a year earlier.

Revenue was $1.35 billion, up 3 percent from the $1.31 billion last year.

According to FactSet Research, analysts were expecting a loss of 53 cents a share on $1.46 billion in revenue.

In a written statement, according to MarketWatch, AMD's Chief Financial Officer Robert Rivet said that while the company's quarter was "disappointing," the tech giant sees "increasing momentum across our businesses."

The company also announced Dirk Meyer will relinquish his role as chief operating officer and take over as CEO. Meyer takes the place of Hector Ruiz, who will now become chairman of the board. AMD did not name a new COO.

Shares of AMD have suffered in recent quarters as investors feel they overpaid for recent acquisition ATI Technologies and have lost market share in consecutive quarters to rival chipmaker, Intel Corp.

AMD shares finished lower 12.2 percent at $4.65 on Friday.