AMD Q1 mixed, but better than expected

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.

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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

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6 comments
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  • They always talk about "win and grow", but they post losses for years

    AMD generated billions of dollars of losses through the years. When they finally go to real stable profits?

    It is highly important to have competition in this field.
    DDERSSS
    • There is competition in this field

      "It is highly important to have competition in this field."

      I can choose to buy AMD chips so consumers have "real" choice, right?

      Or are you concerned that, should AMD fail to make a profit, they will leave the CPU market thus reducing choice to the end consumer? Are you saying it isn't healthy to have a market where 1 company makes nearly all of the profit? I feel that I'm not losing because my Intel laptop is fantastic. Intel makes really great PC chips so I win and the market is healthy, right?

      Hmmm.
      toddbottom3
  • GPU revenue down

    this relly sucks for AMD, esspecialy as they brought a whole new line of of GPU's in this quater and nvidia is looking like it will rule the roost again for the rest of the year too.

    I personally bought an AMD GPU this quater and I would hate too see it loosing support because AMD couldn't afford it
    beenman500
    • thanks for buying AMD

      Hi guys,

      I work at AMD and appreciate the comments (and buying a Radeon GPU this quarter.)

      We aren't leaving the CPU market....or the GPU market. Excluding the charges in the quarter, the performance of the ongoing business was actually strong. Non-GAAP earnings improved 64% from the year ago quarter.

      And actually GPU revenue was up from Q4. We had lower revenue from game console sales in Q1 (we are in the Xbox 360 and Wii) which is why the overall revenue for the graphics business was flat from Q4. We've got a a lot of good products coming out this year and the new management team is very focused on profitable growth and innovative products. Choice is good, and if you go out and do some notebook system shopping I think you will see there are some definite benefits to buying an AMD system vs. an Intel system. With Trinity and Brazos 2.0 coming out this quarter, the story gets even better.

      Thanks for the interest-
      Drew
      aprairie
  • Intel Makes a fine Processor but...

    I still believe to this day that AMD offers more value for one's performance dollar. They may not be the king of speed they once were but offer quality products at a decent price. I have been solely AMD in my personal builds and most of my builds I do for family and friends because when I price out the components I can get a AMD processor and AMD socket motherboard usually cheaper than an Intel Processor and Motherboard that performs about the same.

    I have actually been impressed with the AMD APU line of Processors. They offer exceptional value when it comes to overall system performance. The AMD Radeon GPU integrated into the CPU offers better performance than an Intel CPU/GPU combo usually. I recently was in the market for an inexpensive laptop to replace my 6 year old one and wanted one that performed decent on some games. I found that the A8 APU powered Laptop I bought had better performance than an Intel one with a dedicated GPU at nearly $200 cheaper. I have also read that Windows 8 will be able to take better advantage of the AMD A-Series APU's which I hope is true.

    Of course if you choose to go Intel you are getting a fine product that performs admirably but I firmly believe if it wasn't for AMD shocking the masses with their first Athlon processor and kicking the pants off Intel all through the Pentium 4 era Intel would have been content to offer mediocre processors forever.
    bobiroc
  • Absolutely and totally agree (reply to bobiroc)

    "Of course if you choose to go Intel you are getting a fine product that performs admirably but I firmly believe if it wasn't for AMD shocking the masses with their first Athlon processor and kicking the pants off Intel all through the Pentium 4 era Intel would have been content to offer mediocre processors forever."

    I bought Athlon chips in the day because they were so much better than what Intel had to offer at the time. Companies need good competition or they get complacent and consumers lose.

    I fear that this will happen in the tablet market. Windows RT is the Apple lover's best hope that Apple keeps putting out fantastic products like the iPad because without competition, Apple will do exactly what Intel did with P4 and MS did with WM.
    toddbottom3