AMD pulls in first profit in over a year thanks to console deals

AMD announced net income of $48 million on revenue of $1.46 billion, the company's first profit since Q2 2012. Part of this profit came from a sale-and-leaseback operation of AMD's Singapore facility that netted the company $22 million. Non-GAAP net income came in at $31 million.

AMD's computing solutions (aka processors) sales fell from $841 million to $790 million versus the previous quarter, while graphics and visual solutions revenue soared from $320 million to $671 million in the same timeframe. The large increase in GPU sales is thanks to AMD's deals with Microsoft and Sony for the next-gen consoles, AMD says that sales of GPUs for PCs fell sequentially and year-over-year. The average selling price of AMD's GPUs also declined.

AMD (NYSE: AMD) today announced revenue for the third quarter of 2013 of $1.46 billion, operating income of $95 million and net income of $48 million, or $0.06 per share. The company reported non-GAAP operating income of $78 million and non-GAAP net income of $31 million, or $0.04 per share.

"AMD returned to profitability and generated free cash flow in the third quarter as we continued to successfully execute the strategic transformation plan we outlined a year ago," said Rory Read, AMD president and CEO. "We achieved 26 percent sequential revenue growth driven by our semi-custom business and remain committed to generating approximately 50 percent of revenue from high-growth markets over the next two years. Developing industry-leading technology remains at our core, and we are in the middle of a multi-year journey to redefine AMD as a leader across a more diverse set of growth markets."

You can check the full earnings report over here.