Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

AMD's profitability streak ends at two quarters

The company reported a net loss of $20 million in Q1

Article comments

Advanced Micro Devices' bottom line changed from black to red on Thursday when the company posted a loss after two straight quarters of profits.

The company reported a net loss of US$20 million, or a loss of $0.03 per share, for the first fiscal quarter of 2014, an improvement from a loss of $146 million in the first quarter of the previous year.

However, the company reported a net profit in the two previous quarters, as a restructuring program led by CEO Rory Read and a new management team showed positive results.

AMD reported revenue of $1.40 billion, up 28 percent year over year in the quarter ended March 29. Analysts polled by Thomson Reuters expected revenue of $1.34 billion.

As part of the restructuring over the past two years, Read appointed a new management team, reshaped the product road map, laid off staff and established a new division to make custom chips.

Revenue growth was mainly driven by the Graphics and Visual Solutions unit, which makes graphics chips like the R7 and R9 and "semi-custom" chips, and whose revenue totaled US$734 million, up 118 percent. Semi-custom chips sold by AMD include processors sold to Microsoft for the Xbox One and to Sony for the PlayStation 4.

However, PC chip shipments and revenue declined during the quarter. Revenue from the Computing Solutions division -- which deals in PC, tablet and server chips -- was $663 million, down 12 percent.

AMD introduced new Sempron and Athlon chips during the quarter for the U.S. and Asia markets. The company also shipped new Kabini processor models for PCs. More x86 chips for PCs and tablets are expected to be announced this quarter. AMD is also developing x86- and ARM-based server chips.

The company is well-positioned to grow profitably, backed by the x86 processors, Read said in a statement.

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *