AMD's profitability streak ends at two quarters

The company reported a net loss of $20 million in Q1

Advanced Micro Devices posted a net loss after two straight quarters of profits.

Advanced Micro Devices posted a net loss after two straight quarters of profits.

Advanced Micro Devices' bottom line changed from black to red on Thursday when the company posted a loss after two straight quarters of profits.

The company reported a net loss of US$20 million, or a loss of $0.03 per share, for the first fiscal quarter of 2014, an improvement from a loss of $146 million in the first quarter of the previous year.

However, the company reported a net profit in the two previous quarters, as a restructuring program led by CEO Rory Read and a new management team showed positive results.

AMD reported revenue of $1.40 billion, up 28 percent year over year in the quarter ended March 29. Analysts polled by Thomson Reuters expected revenue of $1.34 billion.

As part of the restructuring over the past two years, Read appointed a new management team, reshaped the product road map, laid off staff and established a new division to make custom chips.

Revenue growth was mainly driven by the Graphics and Visual Solutions unit, which makes graphics chips like the R7 and R9 and "semi-custom" chips, and whose revenue totaled US$734 million, up 118 percent. Semi-custom chips sold by AMD include processors sold to Microsoft for the Xbox One and to Sony for the PlayStation 4.

However, PC chip shipments and revenue declined during the quarter. Revenue from the Computing Solutions division -- which deals in PC, tablet and server chips -- was $663 million, down 12 percent.

AMD introduced new Sempron and Athlon chips during the quarter for the U.S. and Asia markets. The company also shipped new Kabini processor models for PCs. More x86 chips for PCs and tablets are expected to be announced this quarter. AMD is also developing x86- and ARM-based server chips.

The company is well-positioned to grow profitably, backed by the x86 processors, Read said in a statement.

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuesAdvanced Micro Devicesfinancial results

Struggling for Christmas presents this year? Check out our Christmas Gift Guide for some top tech suggestions and more.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?