AMD Reports Financial Results – $74 Million In Losses
Ryan Martin / 3 years ago
The plight of AMD’s finances is well documented and in the past couple of quarters the company has been going through some major restructuring. The latest figures show that for the second quarter of 2013 AMD reported a $74 million loss as a result of a 18% year on year drop in revenues. They had revenue of $1.16 billion, a 40% gross margin and an operating loss of $29 million.
AMD is currently divided into two main sections, the computing solutions group and the graphics solutions group. The computing solutions handles processors, APUs and the like. The computing solutions groups saw 12% more revenue over Q1 of 2013 but a 20% decrease compared to the same figures for last year. According to AMD the increased revenues over the previous quarter are due to more AMD notebook shipments and desktop server shipments but the decline of year on year revenue is due to lower average selling prices.
In the graphics department things weren’t as bad but they did see a 5% decline compared to Q1 and a 13% decline compared to last year. AMD claims average selling prices have declined since Q1, probably due to pressure from Nvidia’s new GPUs.
AMD’s finances do not look so bleak though as it has already arranged to be part of both next generation consoles from Sony and Microsoft as well as part of Apple’s upcoming Mac Pro desktop. AMD is projecting a 19-25% increase in revenues for the next quarter. This should take things to approximately $1.42 billion, up from $1.16 billion this quarter.
Image courtesy of AMD