AMD plummets in the first quarter

ATI acquisition costs add to disappointing results for AMD

AMD's losses are decreasing, but revenue is also going down

Advanced Micros Devices (AMD) has unveiled first quarter net losses of $358m (£179m), compared with a $611m loss for last year's first quarter.

Revenue met projections falling 15 per cent year on the year to $1.5bn and 22 per cent on the fourth quarter of 2007.

The results included charges of $50m related to the acquisition of ATI, while delayed shipments of Barcelona, the new version of AMD's Opteron chip also hit revenues.

And the company expects further decline this quarter due to an imminent restructuring charge and in line with seasonal trends.

Arch rival Intel reported nine per cent growth in revenue with a fall of 12 per cent in profits and forecast a promising second quarter.