AMD's fiscal second quarter results saw it miss expectations on earnings per share, but just scrape past in revenue in what was a relatively dry quarter for the company.
The company reported on Thursday second quarter revenue of $1.44 billion, a 24 percent year-over-year increase, and a net loss of $36 million, or 2 cents a share (statement).
Wall Street was expecting AMD to report earnings of 3 cents a share on revenue of $1.44 billion.
The news was bad enough for AMD's stock price to tumble in after-hours trading.
The chipmaker ($AMD) closed down by 1.1 percent to $4.57 per share on the New York Stock Exchange at market close.
In after-hours trading, it was down as much as 15 percent at the time of writing, and falling.
AMD chief executive Rory Read said the company's second quarter revenue was "strong" and appeared upbeat about its improved financial performance. He added:
"Our transformation strategy is on track and we expect to deliver full year non-GAAP profitability and year-over-year revenue growth. We continue to strengthen our business model and shape AMD into a more agile company offering differentiated solutions for a diverse set of markets."
AMD's cash and equivalents stood at $948 million at the end of the quarter, but down from $982 million in the first quarter. Its debt stood at $2.21 billion, an increase of $70 million from the first quarter.
The company's gross margin was flat at 35 percent in the second quarter.
AMD's divisions varied in performance over the three-month period, ending mid-June.
Its Computing Solutions unit saw revenue increase by 1 percent on the first quarter, but down by 20 percent year-over-year, marking a significant tumble in its de facto PC and notebook-focused business. The decline was due to decreased microprocessor unit shipments, in which their average selling price had risen by an unspecified amount year-over-year.
Although AMD has lowered its reliance on the PC market in recent years, AMD remains at the mercy of the niche desktop and laptop market. The company also provides graphics and gaming components to partners, including chips and hardware for games consoles.
Its Graphics and Visual Solutions unit saw the greatest success. A rise by 5 percent on the first quarter, it was up by a massive 141 percent year-over-year, thanks to semi-custom System-on-a-Chip (SoC) shipments.
The company also invested in a datacenter consolidation project to reinvent its internal IT strategy. In, AMD's chief information office Jake Dominguez said the project helped save the company more than $8.5 million.
Looking ahead, AMD said it expects revenue to increase by 2 percent, plus or minus 3 percent, for the third quarter.