AMD Records Loss of $181 million in Q2 2015
John Williamson / 3 years ago
AMD has published their financial report for the second quarter of 2015 and recorded a loss of $181 million or $0.23 per share. In comparison, AMD’s financial standing at the same point last year yielded a $30 million net loss or $0.05 per share. The GAAP revenue figures illustrate the downturn in AMD’s total revenue from $1.44B in Q2 of 2014 to $942M in Q2 2015. These results are pretty abysmal and a staggering 34% reduction year-over-year. Even more shocking is the fact that AMD has seen a 54% decrease year-over-year from Q2 2014 in the computing and graphics market. AMD believes the root cause is dwindling PC sales meaning their APUs in OEM machines are deployed in such a short supply.
Additionally, AMD initially planned to launch a number of 20nm APU products but transferred to a FinFET process. This move cost AMD $33 million which explains why AMD’s financials are so poor. However, Q3 2015 figures should lead to improved financials due to AMD’s 300 series and Fiji graphic cards. While the 300 cards are fairly basic rebrands, they do offer a good price to performance ratio compared to NVIDIA’s GTX 960, 970 and 980. However, the Fury X wasn’t the game changer we were all hoping for and struggles to keep up with custom cooled GTX 980 Tis.
So what does the future hold for AMD? That’s a very difficult question to answer given their precarious position. Even though the figures are awful, it doesn’t mean AMD are going to suddenly fold in the coming months. The next quarter is vital and they need strong sales from the new graphical line-up. If NVIDIA continue to dominate this market share and extend their advantage, then AMD will be in a very difficult position without the R&D resources required to compete.
Thank you WCCFTech for providing us with this information.