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.