Advanced Micro Devices, Inc. (NYSE:AMD) shares rose 4.6 percent during the trading day but then started falling after hours in the wake of its latest earnings report. Investors and analysts weren’t expecting much, but the company did manage to come out roughly within expectations. Advanced Micro Devices, Inc. (NYSE:AMD) reported $1.09 billion in revenue and a net loss of $94 million or 13 cents per share. Analysts were expecting the company to report a net loss of 17 cents per share and $1.1 billion in revenue.
The company’s gross margin was 41 percent, helped by the sale of inventory which had previously been reserved. According to the company’s statement, those sales impacted its gross margin positively by 2 percentage points. Advanced Micro Devices, Inc. (NYSE:AMD) also benefited from the sale and leaseback of its Lone Star Campus in Texas, which generated about $164 million in cash proceeds, net of certain fees.
Advanced Micro Devices, Inc. (NYSE:AMD) did post a 9 percent decrease and a 38 percent decrease year over year in its Computing Solutions segment, which the company said was because of lower desktop, notebook and chipset shipments. The company’s Graphics segment revenue jumped 3 percent sequentially but decreased 12 percent year over year. Its Graphics processor unit revenue was flat sequentially and down year over year.
The company highlighted some key areas which could give its bottom line a boost in the coming year. For example, Sony said it would use an AMD APU to power its PlayStation 4 gaming console. It also moved into cloud gaming and started shipping the next generation of AMD Elite A-Series APUs.
Advanced Micro Devices, Inc. (NYSE:AMD) guided for a 2 percent increase in revenue for the second quarter of the year, plus or minus 3 percent.
