AMD delivers solid Q3 in Read's debut

AMD reported solid third quarter results in new CEO Rory Read's first financial report.

The company reported third quarter earnings of $97 million, or 13 cents a share, on revenue of $1.69 billion, up 7 percent from a year ago. Non-GAAP earnings were 15 cents a share.

Wall Street was expecting AMD to report third quarter earnings of 10 cents a share on revenue of $1.65 billion.

In a statement, Read said that the company navigated supply constraints and showed strength in emerging markets. "We saw double digit revenue and unit shipment growth in emerging markets like China and India as well as overall notebook share gains in retail at mainstream price points," said Read.

Read's comments about the emerging markets is right out of the Lenovo playbook. Read used to be Lenovo's operating chief. Also see: AMD's new CEO will continue to focus on PC market, then cloud | AMD names Lenovo exec Rory Read CEO, eyes post PC plan

As for the outlook, AMD said that its fourth quarter revenue will be up 3 percent---give or take 2 percent---from the third quarter.

By the numbers:

• Computing solutions revenue was up 5 percent from a year ago. Server and mobile revenue offset weak desktop revenue.
• Graphics chip revenue was up 4 percent in the third quarter compared to a year ago.
• Gross margins were 45 percent.
• AMD had $1.86 billion in cash and equivalents at the end of the quarter.