AMD Q1 mixed, but better than expected

Summary:AMD's outlook for the second quarter assumes flat sales to growth of 3 percent compared to the first three months of the year.

Chipmaker AMD reported mixed results for its first quarter, but beat expectations. AMD sees revenue increasing slightly in the second quarter.

AMD reported a first quarter net loss of $590 million, or 80 cents a share, on revenue of $1.59 billion, down 2 percent from a year ago. Non-GAAP earnings were 12 cents a share.

Wall Street was expecting AMD to report non-GAAP earnings of 9 cents a share on revenue of $1.56 billion.

AMD said that non-GAAP earnings excluded a charge relating to a revised agreement with Globalfoundries, SeaMicro acquisitions costs, restructuring and a tax benefit.

In a statement, AMD CEO Rory Read said that the company has launched new chips and is positioned to "win and grow." As for the outlook, AMD projected second quarter revenue to increase 3 percent, plus or minus 3 percent relative to the first quarter.

By the numbers:

  • Cash and equivalents was $1.71 billion at the end of the first quarter.
  • AMD had 13 weeks of inventory.
  • Computing solutions revenue was flat.
  • Average selling prices for AMD chips was flat.
  • Graphics chip revenue fell 7 percent in the first quarter compared to a year ago.

Related:

Topics: Enterprise Software, Banking, Processors

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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