AMD beats estimates in Q1; aims for 'sustainable returns'

AMD beats estimates in Q1; aims for 'sustainable returns'

Summary: Losses at U.S. chipmaker AMD are nothing new, but it managed to best expectations in a tough quarter. Things are looking up, CEO Rory Read says.

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TOPICS: Hardware
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U.S. chipmaker Advanced Micro Devices posted its fiscal results for the first quarter of 2013 this afternoon, barely beating estimates in an otherwise tough three months for the technology sector.

The company posted a loss per share of $0.19 on revenue of $1.09 billion, besting analyst estimates of $0.18 on revenue of $1.04 billion. Its revenues are down six percent quarter over quarter and down 31 percent compared to the same quarter a year ago.

Highlights and lowlights:

  • Gross margin was 41 percent
  • Cash and equivalents totaled $1.2 billion, buoyed by the sale and leaseback of its "Lone Star" campus in Austin, Texas
  • Revenue in its Computing Solutions segment dropped 9 percent sequentially and 38 percent year-over-year. Why? "Lower desktop, notebook and chipset unit shipments." The average selling price of a microprocessor increased sequentially but decreased year-over-year.
  • Revenue in its Graphics segment increased 3 percent sequentially but decreased 12 percent year-over-year. The average selling price of a GPU increased sequentially as well as year-over-year.

For the second quarter, AMD predicts revenue to increase two percent over Q1, plus or minus 3 percent.

With restructuring in the rearview mirror, "we will continue to diversify our portfolio and attack high-growth markets like dense server, ultra low-power client, embedded and semi-custom solutions to create the foundation for sustainable financial returns," AMD president and chief executive Rory Read said.

The company is hoping it can get traction in the console gaming market, which is heating up in advance of the introduction of the next generation of consoles. To that end, Sony announced that an AMD APU would be used in its upcoming PS4. AMD also has several bundles on offer right now for PC gamers, for the popular titles BioShock Infinite, Crysis 3 and Far Cry 3 Blood Dragon, among others.

Beyond that, the company continues its move into cloud-based gaming and has begun shipping its "Richland" generation of Elite A-Series APUs. It will also continue work on its Open 3.0 server platform.

amd-1q13-results

Topic: Hardware

Andrew Nusca

About Andrew Nusca

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. During his tenure, he was the editor of SmartPlanet, ZDNet's sister site about innovation.

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3 comments
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  • AMDs so non competitive now its not even funny. Its future is now low

    chips for game consoles. At least we have arm to push intel ever forward.
    Johnny Vegas
    • To be fair to them, they've not had a lot of choice...

      Their ability to keep up with intel's fabrication tech has been lacking as the push towards the sub 20nm process continues. To this end their chips have been cheaper to make but less efficient. This year GF opens an American based facility commissioned to push into the sum 20nm field. This is AMD's biggest chance to regain competitiveness, particularly at the ultra low
      TDP market, which we are told is the future of everything from
      Servers to the moon and back.

      As for performance chips I don't know. There was a report they plan to finally address intel's i7 line with some alternatives; presumably to boost/revitalise the brand image a little. It would seem that these however will be utilising older fabrication tech than ivybridge, resulting in what has become synonymous with AMD of late; more cores, more ghz, more power, more heat. In an age of less is more... Do we really want these? In short I think they're more an "we have i7 too" statement than a sensible chip development, or maybe a tie-over until they are able to utilise new tech. Either way it's a slight increase in competition...

      Additionally games console sales could *could* be a nice client. If Sony sell big, or if the new Xbox goes apu, then it could be very beneficial to the company; a good cash flow to fund investment. (Don't forget the current games console generation lasted since 2005-2013! )

      I do have a soft spot for them on the one hand for being the under dog that used to be good when I got into it all and may rise again.... Though that does wrestle some with their origins in x86...
      MarknWill
  • AMD beats estimates in Q1; aims for 'sustainable returns'

    good to have competition! am always an amd fanboy since i cannot afford intel chips, but am worried that even intel may slow down because of the high cost of retooling their foundries ($12 billions and rising) and the apparent (may not be happening now) shrinking of intel-based devices courtesy of non-intel devices taking over the market.
    kc63092@...