AMD reveals rubbish results

Dads Army Frazier - doomedAMD released its first quarter financial results and it seems the company is slumping further into the red.

The outfit reported revenue of $1.03 billion for the quarter. This is a 16.9 percent decrease as compared to fourth quarter of 2014, and a 26.4  percent decrease from the $1.40 billion recorded during the same time last year.

Operating income was an operating loss of $137 million, which is a substantial decrease in loss as compared to the last quarter where it had an operating loss of $330 million. In the first quarter of 2014 it  had a small operating income of $49 million.

What looks like a slight improvement over quarters is also a significant reduction year-over-year. Net loss for the quarter was $180 million which was better than the same time last year where there was a $364 million loss, but much worse than the $20 million loss in Q1 2014.

Part of these losses are due to the restructuring at AMD. One of the new restructuring fees is due to the exit from the Seamicro branded dense server business, which has cost it an additional $75 million this quarter, including $7 million in cash.

AMD’s operating loss is $30 million, however that is still down significantly from the $89 million operating income in Q1 2014, and the $52 million operating income from last quarter.

AMD has also entered into a fifth amendment of its agreement with GlobalFoundries, and AMD is expecting to buy about $1 billion in wafers in 2015.

Breaking down their product segments, the Computing and Graphics segment had a 20 percent decline in revenue quarter-over-quarter, and a 38 percent decrease year-over-year, with Q1 having net revenues of $532 million.

The quarterly decrease was due to lower desktop and notebook processor sales, whereas the yearly decrease was due to lower desktop processor sales and GPU channel sales. The division had an operating loss of $75 million for the quarter, which is a significant change from the $56 million loss last quarter and the $3 million income in Q1 2014.

AMD is hoping for better success with its APU, Carrizo, which it is expecting to deliver double digit performance increases and much better energy efficiency compared to Kaveri, which is the current APU.

The Enterprise, Embedded and Semi-Custom segment had a year-over-year revenue decrease of 7 per cent, and a quarter-over-quarter decrease of 14 per cent, with Q1 2015 coming in at $498 million.

The quarterly drop is due to a seasonal decrease in semi-custom SoC sales which is because the consoles are back to lower sales and server processor sales fall. This area had an operating income to report of $45 million for the quarter, but this is down from the $109 million in Q4.

AMD is forecasting revenue being down an additional thee per cent so it does not look like things are going to get much better.

To be fair though AMD has not had a significant product launch in a few quarters, which has not helped the gloom either.