AMD's revenue down 10%, workforce down 15%
Subject: General Tech | October 19, 2012 - 11:04 AM | Jeremy Hellstrom
Tagged: quarterly earnings, downer, billions, amd
The hard numbers have arrived and AMDs quarter was every bit as bad as investors had feared, with a non-GAAP net loss of US$150 million and a $0.20 loss per share. The actual income for this quarter was $1.27 billion, the low end of the predictions that were made by analysts and with the sluggish movement in the PC market the choice has been made to lower operating costs as opposed to trying to increase revenue. To do so they will be reducing their global workforce by 15% over the coming quarter and restructuring the company with the goal of reducing operating costs by 25% so that a $1.3 billion dollar quarter would be a break even point, not a loss. The Register details other changes Rory Read is planning on implementing, more of a focus on chips for servers and embedded cores and SoCs for communication and industrial applications. As well AMD's win on the console side, with the Sony PS4 using AMD for both CPU and GPU as well as the WiiU which will use an AMD GPU and the as yet unnamed new XBox, all of which will garner licensing incomes for AMD for years to come. The talk about ultra-low-power chips for tablets and ultrabook like products is hopeful, though it is unlikely to be a major revenue source it would be a good move to attempt to grab more market share in that segment. DigiTimes also weighs in here.
"One week ago, AMD warned investors that its financial results for its third quarter of 2012 were going to be worse than it had previously estimated, with revenues down about 10 per cent from the previous quarter rather than the 1 per cent, plus or minus 3 per cent, that they had forecasted earlier.
They were spot on – not that being correct about such a disappointing result will win them many friends on the Street.
After the markets closed this Thursday, AMD announced that its Q3 2012 revenues were $1.27bn, which hit that prediction of a 10 per cent quarter-to-quarter slippage."
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