Advanced Micro Devices, the second largest maker of PC microprocessors, on Thursday admitted to an “ugly” 2007, which saw all of its businesses lose money and the botched launch of a key microprocessor that halved its PC server market share.

But Hector Ruiz, chief executive, sought to reassure worried investors on Thursday, promising to return AMD to profitability in 2008 in what he dubbed a “phenomenal transition year”.