AMD Results Miss Estimate; Stock Down 7% - Quick Facts

(RTTNews) - Chip maker Advanced Micro Devices Inc (AMD) Thursday reported third-quarter net earnings of $17 million or $0.02 per share compared with $48 million or $0.06 per share last year.

Excluding items, adjusted earnings for the quarter were $0.03 per share compared with $0.04 per share a year ago.

Revenues for the quarter slid 2% to $1.43 billion from $1.46 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.04 per share on revenues of $1.47 billion for the quarter. Analysts' estimates typically exclude special items.

For the fourth quarter, AMD expects revenue to decrease 13 percent, plus or minus 3 percent, sequentially.

Effective July 1, AMD reorganized into two business groups, one focused on the traditional PC market and the other on adjacent high-growth opportunities.

AMD shed light on its restructuring efforts aimed at profitability and long-term growth while aligning investments and resources with high-priority opportunities.

The company said it expects to incur a restructuring and impairment charge of about $57 million in Q4 2014, primarily related to severance, and a restructuring charge of about $13 million in 1H 2015, primarily related to real estate actions.

The company expects to make cash payments related to these actions of about $34 million in Q4 2014 and $20 million in 1H 2015.

The measures are expected to result in operational savings, primarily in operating expenses, of about $9 million in Q4 2014 and about $85 million in 2015.

The restructuring is expected to reduce AMD's global headcount by 7 percent, largely to be completed by the end of Q4 2014.