AMD misses Q1 earnings targets
AMD reported troubling second quarter earnings after the bell Thursday.
The chipmaker reported a loss of $180 million, or a loss of 23 cents per share. Revenue landed at $1.03 billion, down 26 percent on the year-ago quarter (statement).
Non-GAAP earnings were a loss of 9 cents per share.
Wall Street was expecting a loss of 5 cents per share on revenue on $1.05 billion.
AMD chief executive Lisa Su was surprisingly upbeat despite the lower-than-expected results, looking at the future rather than dwelling too much on the past.
"Building great products, driving deeper customer relationships and simplifying our business remain the right long-term steps to strengthen AMD and improve our financial performance," Su said.
She added: "Under the backdrop of a challenging PC environment, we are focused on improving our near-term financial results and delivering a stronger second half of the year based on completing our work to rebalance channel inventories and shipping strong new products."
The chipmaker had $906 million in cash and equivalents, down from $134 million during the three-month period.
AMD's performance by department varied, but both fared badly:
- Computing and graphics: Revenue dropped 38 percent year-over-year, primarily due to lower desktop processor sales and poor graphics processor channel sales.
- Enterprise, embedded and semi-custom: Revenue decreased 7 percent year-over-year due to poor server sales. Lower game console royalties, and higher research and development also contributed to the poor quarter.
AMD closed up 6.3 percent at market close. In after-hours trading, its shares dropped by more than 9 percent.