AMD has officially announced its first-quarter financial results for 2015, reporting a revenue of $1.03 billion, with US $137 million operating loss and US $180 million net loss.
AMD took quite a hit compared to the the same period last year with a drop in revenue of 26 percent, from US $1.4 billion down to US $1.03 billion. The modest operating and net income of US $49 million have been replaced with a loss of US $137 million and US $180 million, while gross margin dropped by 3 percent. When compared to the last quarter, Q4 2014, AMD actually managed to report a lower revenue but also lower net and operating income loss which were set at US $364 million and US $330 million.
AMD's Computing and Graphics division took the biggest hit, reporting a 38 percent revenue decrease when compared to the same period last year. It also reported a US $75 million operating loss for Q1 2015. AMD blames the lower result on low desktop and notebook processor sales, while a drop in 7 percent from the Enterprise, Embedded, and Semi-Custom division was blamed on a drop in server processor sales.
Another interesting thing is that AMD is shutting down dense server systems unit it got when the company acquired SeaMicro. AMD will take a US $75 million charge for this shutdown.
AMD's CEO Lisa Su said that "Building great products, driving deeper customer relationships and simplifying our business remain the right long-term steps to strengthen AMD and improve our financial performance. Under the backdrop of a challenging PC environment, we are focused on improving our near-term financial results and delivering a stronger second half of the year based on completing our work to rebalance channel inventories and shipping strong new products.”
According to AMD, the next quarter will not be better either as the company expects a 3 percent drop in revenue.
Source:
AMD.com.