Lower PC desktop sales were partly blamed for by AMD for a hefty first-quarter loss Thursday of 9 cents a share on $1.03 billion in revenue.
Shares fell more than 10 percent in trading Friday, closing at $2.57 a share.
AMD s revenue was down 26 percent from the same quarter last year. The company reported a non-GAAP loss of $73 million in profit, and a fully-reported loss of $180 million, or 23 cents a share.
The report widly missed Wall Street estimates of non-GAAP 5 cents a share and a fully-reported 9 cents.
While AMD is showing some maturity, said Stacy Rasgon, analyst with xx Bernstein, it won t take much to push it over the edge, he said.
If AMD s back half does not come through, they will be in serious trouble, Rasgon said
The Sunnyvale chip company is looking for a stronger second half, said CEO Lisa Su. The introduction of Windows 10 and a ramp-up in console sales is expected.
Revenue from computing and graphics was down 20 percent from the prior quarter but up 38 percent from the first quarter of 2014.
Its enterprise segment was 7 percent from the first quarter of 2014, which it said was primarily driven by lower server processor sales.
The company said it is leaving the dense server business, formerly SeaMicro, immediately, and recording a $75 million special charge for that.
AMD said it expects to buy $1 billion in wafers from GlobalFoundries this year.
Photo of AMD headquarters from Associated Press
