AMD may split itself up
Semiconductor maker Advanced Micro Devices Inc. is considering whether it should split itself in two or spin off a business, Reuters reported.
Citing anonymous sources, the wire service reported that the California company, which operates a major facility in Austin, wants to reverse its fortunes and compete with rival Intel Corp. One possible scenario would center on AMD (Nasdaq: AMD) breaking away graphics and licensing from its server business.
AMD, which was founded in 1969, employed more than 10,100 workers — including roughly 1,900 in Austin — until an undisclosed number of layoffs earlier this year. The company also disclosed that three senior executives in Austin departed AMD after declining revenue and the hiring of a new Austin-based CEO in late 2014.
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In April, AMD posted a first-quarter loss of $180 million, or 23 cents per share, on revenue of $1.03 billion. That compares with a loss of $20 million, or 3 cents per share, on revenue of $1.4 billion during the same period last year, according to a filing with the U.S. Securities and Exchange Commission.
This year, the company’s stock price has declined 3.3 percent. In pre-market trading Monday, shares increased nearly 2 percent to $2.63.
In 2014, AMD posted a loss of $403 million, or 53 cents per share, on revenue of $5.51 billion versus a loss of $83 million, or 11 cents per share, on revenue of $5.3 billion during 2013