AMD posts net loss of $146 million for Q1 2013

Posted on Friday, Apr 19 2013 @ 15:05 CEST by Thomas De Maesschalck
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Chip designer AMD announced a net loss of $146 million, or 19 cents per share, on revenue of $1.09 billion for the first quarter of this year. The good news is that AMD's losses are shrinking, the loss is the smallest in a year, but the company is clearly suffering from the shrinking PC market. A year ago AMD still pulled in a first quarter revenue of $1.59 billion but with a net loss of $590 million.

Revenue from shipments of processors and chipsets collapsed 38 percent year-over-year due to lower PC sales, while sales of GPUs were 12 percent lower than the same period the year before.

While the $146 million loss is smaller than the previous quarters, the company points out in its financial summary that gross margin increased sequentially due to a $20 million benefit from sales of inventory that had been previously reserved, and that cash reserves were bolstered by a sale and leaseback operation of the Lone Star Campus in Austin, Texas, which generated $164 million, net of certain fees.

For the current quarter, AMD expects revenue to increase 2 percent, plus or minus 3 percent.
AMD (NYSE:AMD) today announced revenue for the first quarter of 2013 of $1.09 billion, an operating loss of $98 million and a net loss of $146 million, or $0.19 per share. The company reported a non-GAAP operating loss of $46 million and a non-GAAP net loss of $94 million, or $0.13 per share.

"Our first quarter results reflect our disciplined operational execution in a difficult market environment," said Rory Read, AMD president and CEO. “We have largely completed our restructuring and are now focused on delivering a powerful set of new products that will accelerate our business in 2013. We will continue to diversify our portfolio and attack high-growth markets like dense server, ultra low-power client, embedded and semi-custom solutions to create the foundation for sustainable financial returns.”

Quarterly Financial Summary
  • Gross margin was 41 percent.
  • Gross margin increased sequentially due to a $20 million benefit from sales of inventory that had been previously reserved which positively impacted gross margin by 2 percentage points.
  • Cash, cash equivalents and marketable securities balance, including long-term marketable securities, was $1.2 billion at the end of the quarter.
  • First quarter cash was bolstered by the closing of a sale and leaseback transaction of the “Lone Star Campus” in Austin, Texas generating cash proceeds of approximately $164 million, net of certain fees.
  • Computing Solutions segment revenue decreased 9 percent sequentially and 38 percent year-over-year. The sequential decrease was primarily due to lower desktop, notebook and chipset unit shipments. The year-over-year decline was driven primarily by lower unit shipments.
  • Operating loss was $39 million, compared with an operating loss of $323 million in Q4 2012 and operating income of $124 million in Q1 2012. The Q4 2012 operating loss included the impact of a GLOBALFOUNDRIES-related “lower of cost or market” (LCM) charge of $273 million.
  • Microprocessor Average Selling Price (ASP) increased sequentially and decreased year-over-year.
  • Graphics segment revenue increased 3 percent sequentially and decreased 12 percent year-over-year. Graphics processor unit (GPU) revenue was flat sequentially and down year-over-year.
  • Operating income was $16 million, compared with $22 million in Q4 2012 and $34 million in Q1 2012.
  • GPU ASP increased sequentially and year-over-year.

  • About the Author

    Thomas De Maesschalck

    Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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