AMD Exceeds Expectations But Posts Losses In Q2
A day after its competitor Intel posted financial results for its most recent quarter that came in slightly below analyst’s estimates, AMD bucked that disappointing trend – but it’s not quite out of the woods yet.
AMD reported its second quarter results on Thursday after markets closed, and reported a loss of $0.09 per share on sales revenues of $1.16bn.
In the previous first quarter, revenues came in at $1.09 billion, down 32 percent from a year ago. Last quarter, the chip maker’s net loss per share (after one-time items) was 13 cents a share, or $94 million.
The Sunnyvale, Calif.-based AMD, the No. 2 maker of PC microprocessors, has had a tough couple of years as it trailed Intel in competitiveness and saw a slowdown in demand as consumers began to favor tablets and smartphones over PCs. Since it wasn’t well positioned for that transition, the slowdown hit AMD harder than Intel
Analysts expected a loss of 13 cents a share on revenue of $1.1 billion for the second quarter. AMD had a profit of 6 cents a share a year ago.
A.M.D. processors are being used in Microsoft’s coming Xbox One and Sony’s next-generation PlayStation game consoles. These devices are largely behind A.M.D.’s upbeat revenue forecast.
A.M.D. said its gross margin in the second quarter was 40 percent and would fall to about 36 percent in the third quarter. Analysts on average had expected a third-quarter gross margin of 39 percent.