AMD results were better than expected

AMD surprised the cocaine nose jobs of Wall Street by accouncing a better than expected third quarter result.

AMD made $1.46 billion which was made up of operating income of $95 million and net income of $48 million.

Analysts figures were stuffed up by AMD collecting a deal to supplying processors for new game consoles like Sony PlayStation 4 and Microsoft Xbox One, which go on sale in November.

Rory Read, AMD president and CEO, said that AMD returned to profitability and generated free cash flow in the third quarter.

He said that it was all part of his strategic transformation plan which was outlined a year ago.

Read said he wanted to generate half of the outfit’s 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,” Read said.

But there was somethings to concern investors, some of whom thought the blow-out in the books from the console deal should have been higher.

Revenue from the company’s computing solutions segment revenue decreased six percent sequentially and decreased 15 percent year-over-year.

This was due to less notebook and chipset unit shipments, partially offset by an increase in desktop unit shipments.

Operating income was $22 million, compared with operating income of $2 million in the second quarter and an operating loss of $114 million in third quarter of last year 2012.

The microprocessor average selling price (ASP) was flat sequentially and decreased year-over-year, AMD said.

Graphics and visual revenue increased 110 percent sequentially and increased 96 percent thanks to AMD’s semi custom business.

But GPU revenue declined, this is because in the third quarter AMD customers began moving to new products.