Advanced Micro Devices Inc. lost $146 million in the first quarter and saw sales decline 21 percent from the same period last year, but company officials on Wednesday said the company is on target to reach the break-even point by the end of the second quarter.
The Sunnyvale, Calif., chip maker saw its numbers jump from the fourth quarter 2002, including a 4 percent increase in sales. In the fourth quarter, AMD lost $855 million.
PC processor sales came in at $468 million, an 11 percent increase over the fourth quarter, and memory sales of $218 million represented the fourth consecutive quarter of increased sales, officials said.
CEO Hector Ruiz said the stronger quarter was due to a combination of strong product releases and the companys ongoing push to pare $300 million in expenses this year. Included in that push is job reductions, from 14,400 employees a year ago to about 12,100 now. Ruiz said that job cuts will continue in the second and third quarters.
The company has placed $800 million as the break-even point for revenue.
"I see a renewed sense of accomplishment, a new sense of confidence and a new sense of focus at AMD," Ruiz said.