ALTHOUGH ADVANCED MICRO ~ Devices reported lower rev¬enues in line with its previous warning, the company record¬ed yet another loss on fiat to declining sale prices.

That prompted chief executive Hector Ruiz in a conference call to an¬nounce that the company would scruti¬nize each of its businesses, and either sell off or otherwise exit those that were not in line with the company's core operations. The decision is "an addition" to the restructuring plan the company announced in its earlier earnings warning, he said.

Essentially, everything that is not part of the company's X86 micropro¬cessor and graphics business may be examined, Ruiz said, for "leadership and profitability". "Absent these, we will exit those businesses," he said.
AMD reported a loss of $358 million on revenue of $1.505 billion for the first quarter of 2008. That loss narrowed from the $1.772 billion loss AMD re-
ported during the fourth quarter of 2007, when AMD reported revenue of $1.770 billion, a 15 percent sequential decline.



AMD has reported losses for six straight quarters, dating back to the third quarter of2006. During that time, the company lost $4.311 billion on rev¬enue of $9.288 billion. The most likely target for AMD's ax will be its small consumer electronics business, which recorded just $81 mil¬lion in revenuee for the first quarter. That proved to be a decline of 26 per¬cent and 31 percent, respec¬tively, from the fourth quarter and first quarter of 2007.

AMD's Computing Group recorded $1.194 billion in revenue, meanwhile, and the graphics business recorded $230 million in revenue. The problem is that in both the microprocessor and graphics businesses, the average unit selling price either fell
or remained flat -- meaning that AM D's revenue per unit decreased. Specifical¬ly, microprocessor ASPs remained fiat compared to both the fourth quarter and first quarter 2007, while the average selling price of ATI's graphics chips declined versus the fourth quarter, and remained fiat versus the fourth quarter of 2007. Overall, however, gross margins dipped to 42%, down two points from the 44% recorded in the fourth quarter