Slips back down
AMD has now posted its financial results for the fourth quarter of 2014 and the whole year, ending up with drop of revenue and negative net income.
The fourth quarter 2014 did not help AMD much as the company reported a revenue of US $1.24 billion, which is way below US US $1.43 billion in Q3 2014 and US $1.59 billion in Q4 2013.
The reported net income loss is US $364 million which is quite a surprise considering that the company reported net income gain of US $17 million and US $89 million in both Q3 2014 and Q4 2013, respectively. The operating income took a US $330 million hit, while in Q3 2014 and Q4 2013, it was in the green with US $63 million and US $135 million.
According to AMD, the revenue in the Computing and Graphics business fell by 15 and 16 percent compared to the last quarter and the same quarter last year. Both the GPU as well as chipset sales were down compared to the last quarter and, according to AMD, it was due to decrease in desktop processor sales. AMD's Enterprise, Embedded and Semi-Custom part also reported a drop of 11 percent in revenue compared to the last quarter, due to lower sales, but it was up by 51 percent compared to the last year, mostly due to deals with Sony and Microsoft on Playstation 4 and Xbox One.
AMD did not do that bad when compared to the last year, as the company reported a slight growth in revenue during this year, but it also saw a gross margin drop and increase in losses as well.
AMD's CEO, Lisa Su, noted that company has made progress in diversifying business, ramping design wins and improving the balance sheet, despite recent challenges in the PC industry. She did not fail to note over 50 percent annual increase for Enterprise, Embedded and Semi-Custom segment as well as note that the company is taking steps to return to healthy trajectory in the second quarter of 2015.
While AMD will launch its Carrizo chips in mid-2015, it appears that the company expects a healthy revenue boost from some other market segment, most likely GPU one.
AMD is also predicting a yet another drop in revenue for the next quarter ending up with anywhere between US $1.017 and US $1.091 billion, or a 15 percent (+/- 3%) drop.
Source: AMD.com.
The fourth quarter 2014 did not help AMD much as the company reported a revenue of US $1.24 billion, which is way below US US $1.43 billion in Q3 2014 and US $1.59 billion in Q4 2013.
The reported net income loss is US $364 million which is quite a surprise considering that the company reported net income gain of US $17 million and US $89 million in both Q3 2014 and Q4 2013, respectively. The operating income took a US $330 million hit, while in Q3 2014 and Q4 2013, it was in the green with US $63 million and US $135 million.
According to AMD, the revenue in the Computing and Graphics business fell by 15 and 16 percent compared to the last quarter and the same quarter last year. Both the GPU as well as chipset sales were down compared to the last quarter and, according to AMD, it was due to decrease in desktop processor sales. AMD's Enterprise, Embedded and Semi-Custom part also reported a drop of 11 percent in revenue compared to the last quarter, due to lower sales, but it was up by 51 percent compared to the last year, mostly due to deals with Sony and Microsoft on Playstation 4 and Xbox One.
AMD did not do that bad when compared to the last year, as the company reported a slight growth in revenue during this year, but it also saw a gross margin drop and increase in losses as well.
AMD's CEO, Lisa Su, noted that company has made progress in diversifying business, ramping design wins and improving the balance sheet, despite recent challenges in the PC industry. She did not fail to note over 50 percent annual increase for Enterprise, Embedded and Semi-Custom segment as well as note that the company is taking steps to return to healthy trajectory in the second quarter of 2015.
While AMD will launch its Carrizo chips in mid-2015, it appears that the company expects a healthy revenue boost from some other market segment, most likely GPU one.
AMD is also predicting a yet another drop in revenue for the next quarter ending up with anywhere between US $1.017 and US $1.091 billion, or a 15 percent (+/- 3%) drop.
Source: AMD.com.
News by Luca Rocchi and Marc Büchel - German Translation by Paul Görnhardt - Italian Translation by Francesco Daghini
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