AMD Announces $1.16 Billion Revenue In Q2 2013 Fiancial Results

Subject: General Tech | July 19, 2013 - 02:23 PM |
Tagged: amd, financial results, graphics and visual solutions, x86

AMD recently released its financial results for the second quarter of 2013. AMD had a decent quarter that demonstrated the positive effects of its ongoing restructuring efforts, but the company is, unfortunately, still operating at a loss.

In Q2 2013, AMD reported revenue of $1.16 billion, a 40% gross margin, operating loss of $29 million, and a net loss of $74 million. It experienced loss per share of $0.10. Total revenue has increased 7% versus last quarter, but is still down 18% YoY (Year over Year).

Within AMD, there are two major groups that bring in revenue: the Computing Solutions group and the recently-renamed Graphics and Visual Solutions group.

The Computing Solutions group is responsible for processors while the Graphics and Visual Solutions group is responsible for all of AMD’s graphics technologies, including GPUs.

The Computing Solutions groups experienced a 12% increase in revenue versus last quarter, and a 20% decrease in revenue versus the same time last year. According to AMD, the increase in revenue is primarily due to “significantly higher” notebook shipments and an increased number of desktop and server shipments. Further, the YoY decrease is the result of lower overall unit shipments and lower processor Average Selling Prices (ASP).

While the processor division is doing better, the Graphics and Visual Solutions group saw revenue decreases versus last quarter and last year. Specifically, revenue fell 5% QoQ and fell 13% YoY. AMD reasons that the Average Selling Price of its GPUs has increased YoY while also falling versus last quarter.

During Q2 2013 (and 2013 in general), AMD announced design wins for all the major gaming consoles and Apple’s upcoming Mac Pro desktop with dual FirePro cards, released a slew of new A-Series and embedded G-Series APUs, unleashed its 5.0GHz FX-9590 Piledriver-based CPU, and launched low power Opteron X processors. AMD's performance in Q2 was the result of its continued focus on restructuring as well as "opportunities in high growth and traditioanl PC businesses" according to CEO Rory Read.

According to the company, its outlook for next quarter is a revenue increase of 22% (+/- 3%), or approximately $1.42 billion.

Source: AMD