AMD meets Q4 expectations; shares slip anyway

Summary:AMD shares started to tumble in after-hours trading, likely due to a weak outlook for the first quarter of 2014.

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Tech earnings season is getting underway on Tuesday with results coming in from the likes of IBM, Texas Instruments, and AMD. Here's a closer look at how the processor giant did.

AMD churned a Q4 net income of $89 million, or 12 cents per share (statement).

Non-GAAP earnings were six cents per share on a revenue of $1.59 billion, up 38 percent year-over-year.

Wall Street was looking for earnings of six cents per share on a revenue of $1.54 billion.

However, AMD shares still dipped by nearly eight percent in after-hours trading.

That could be due to annual results as well as a weak outlook.

For 2013 overall, AMD posted revenue of $5.3 billion, down two percent year-over-year. That was matched by a net loss of $83 million, or 11 cents per share.

Focusing on the quarter instead, CEO Rory Read reflected the most recent results as well as the year ahead in prepared remarks:

Strong execution of our strategic transformation plan drove significant revenue growth and improved profitability in the fourth quarter. The continued ramp of our semi-custom SoCs and leadership graphics products resulted in a 38 percent revenue increase from the year ago quarter. Our focus in 2014 is to deliver revenue growth and profitability for the full year by leveraging our differentiated IP to drive success in our targeted new markets and core businesses.

Blaming declining PC shipments worldwide (like everyone else), Computing Solutions revenue dropped nine percent sequentially and 13 percent year-over-year.

But gaming is pulling its weight. Graphics and Visual Solutions segment revenue increased 29 percent sequentially and 165 percent year-over-year. AMD championed its semi-custom SoCs as the fuel factor.

For the current quarter, Wall Street expects AMD to suffer a loss at a penny per share on a revenue of $1.36 billion. AMD concurred to some extent, projecting that revenue will decrease by 16 percent, plus or minus three percent.

Topics: Processors, Enterprise 2.0, Hardware, PCs, Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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