AMD has released its financial report for the first quarter of fiscal year 2016 with lower revenue and a fresh joint venture deal with THATIC which will include US $293 million in cash.

AMD has reported a revenue of US $832 million, which is down by 19 percent compared to the same period last year and 13 percent compared to the last quarter. The good side of the story is that the company has reported a gross margin of 32 percent, which is 2 percent higher compared to the last quarter.

Unfortunately, the operating expenses are also up to US $344 million, compared to US $332 million in the last quarter. The operating loss is at US $68 million, which is a decent improvement compared to US $137 in the same quarter last year. The net loss for the quarter is reported at US $109 million, or $0.14 per share.

All AMD departments have reported a lower revenue with the Computing and Graphics segment hitting US $460 million, a drop of 2 percent from the last quarter and 14 percent compared to the last year. The reason for a lower revenue can be attributed to a drop in both desktop and notebook sales, with GPU sales dropping in average price compared to the last year.

The Enterprise, Embedded, and Semi-Custom part of the company did not do well either and reported a lower revenue of $372 million, which is down 24 percent compared to the last quarter and 25 percent compared to the last last year.

The big for AMD is the new deal with Chinese THATIC, which is joint-venture and an IP licensing deal which gives AMD $52 million immediately and the rest of the US $293 million after the completion, in addition to future royalties.

AMD also has high hopes for future and its products based on 14nm manufacturing process and recent rumors of console updates could do well for AMD.





Source: AMD.com.