Advanced Micro Devices (NASDAQ:AMD), a chip maker, swung to a fiscal third-quarter loss as revenue fell amid a shrinking market for personal computers.
Net loss was $197mln, or $0.25 loss per share, in three months ended September 26, compared to a year-earlier profit of $17mln, or $0.02 per share.
On an adjusted basis, the loss was $0.17 per share, wider than the $0.12 loss predicted by analysts polled by Capital IQ.
Third-quarter revenue fell 26% to $1.06bn, but surpassed the Wall Street consensus of $995.9mln.
AMD said revenue in its computing and graphics segment was off 46% from the year-earlier quarter.
"Overall, PC demand, particularly in the consumer market, continues to be somewhat muted," Reuters cited Chief Executive Officer Lisa Su as saying on a call with analysts.
PC shipments weakened 7.7% worldwide in the third quarter as the rising dollar made them costlier.
Looking ahead, AMD said it expects revenue to decrease 10% in the fiscal fourth quarter from the third quarter compared with analyst estimates of a 6% drop.
Shares fluctuated in early trading on Friday and were last up 1.5% at $2.00 as of 8:54 a.m. in New York. The stock had lost 26% this year through the close of trading on Thursday.
Separately, the Sunnyvale, California-based company unveiled late on Thursday a deal with a Chinese company that will provide a $371mln cash infusion and cut future costs.
Under the deal, Nantong Fujitsu Microelectronics will purchase an 85% stake in those operations and AMD will retain the remainder.