Revenue of computing solutions rose 1 percent sequentially but decreased 20 percent year-over-year due to decreased microprocessor shipments. The graphics and visual computing segment on the other hand posted a 5 percent sequential and 141 percent year-over-year growth but this was primarily driven by demand for AMD's custom chip solutions such as the SoCs for the PlayStation 4 and Xbox One.
AMD didn't reveal exact figures about the sales of its GPUs but noted that sales declined both sequentially and year-over-year, primarily due to a decrease in add-in-board channel sales, partially offset by increased sales of workstation graphics cards and desktop OEM GPUs. One of the reasons for the decreasing sales of AMD's GPUs is the shifting demand from cryptocurrency miners, as ASICs have become widespread this market is no longer interested in video cards.
For the current quarter, AMD expects revenue to increase 2 percent, plus or minus 3 percent, sequentially. CEO Rory Read notes that AMD's transformation strategy is on track and expects to deliver full year non-GAAP profitability and year-over-year revenue growth.
Investors didn't seem convinced as AMD's stock plunged 18.67 percent to $3.79 in after-hours trading.
AMD (NYSE:AMD) today announced revenue for the second quarter of 2014 of $1.44 billion, operating income of $63 million and net loss of $36 million, or $0.05 per share. Non-GAAP operating income was $67 million and non-GAAP net income, which primarily excludes $49 million of loss from debt redemption in the quarter, was $17 million, or $0.02 per share.
“The second quarter capped off a solid first half of the year for AMD with strong revenue growth and improved financial performance,” said Rory Read, AMD president and CEO. “Our transformation strategy is on track and we expect to deliver full year non-GAAP profitability and year-over-year revenue growth. We continue to strengthen our business model and shape AMD into a more agile company offering differentiated solutions for a diverse set of markets.”
Full details at AMD.