Advanced Micro Devices, Inc reported is sixth straight quarterly loss on Thursday but share closed nearly 2 percent higher as results met Wall Street analysts' expectations.
AMD piled another $358 million in losses to more than $4 billion it has already lost since the end of 2006. It has also lost market share in the chip market against its closest rival Intel during the period.
The company said today that it expects to return to operating profitability in the second half of the year.
Sunnyvale, California-based AMD reported a narrower loss for its first-quarter of $358 million, or 59 cents per share, compared to a $611.0 million loss, or $1.11 a year earlier.
Revenue grew 22 percent to $1.51 million compared to $1.23 in the year ago period.
The loss met analysts' lowered expectations of a 51 cents per share loss, according to a poll by Thomson Financial. The figure excludes one-time charges related to the 2006 acquisition of graphics chip maker ATI Technologies
AMD chief financial officer Robert Rivet said the seasonally weak first quarter was amplified by a challenging economic environment for consumers and poor sales of previous generation products resulting in lower than expected revenues in all business segments.
We remain committed to achieve operating profitability in the second half of the year, driven by our portfolio of new products and platforms and aggressive restructuring programs, he said.
AMD also predicted revenue declines for the second quarter.
In the seasonally down second quarter, AMD expects revenue to decrease in line with seasonality, AMD said.
Shares of AMD rose 12 cents, or 1.98 percent to close at $6.19 during normal trading hours.