AMD will not be back in the black until the second half of next year following technical problems with its latest server chip, according to the company's chief executive.

The microprocessor firm aims to break even in the second quarter of 2008 before returning to profitability in the following three months, Hector Ruiz told an analyst conference in New York.

"We have gone through a very difficult time, reacted quickly and decisively, and we are on our way to really have, I believe, a phenomenal transition year in 2008," said Ruiz.

The firm's share value fell 13c to $8.8 on Thursday, following the announcement.

AMD's recent performance has suffered due to problems with its Barcelcona server chip, which combines four processors in a single device. The product launched in September but is still unavailable for bulk purchases, due to technical faults.