Advanced Micro Devices, Inc. (AMD) Losses In Line With Estimates, Sales Miss

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Advanced Micro Devices, Inc. (AMD) Losses In Line With Estimates, Sales Miss

Advanced Micro Devices released the earnings results from its second fiscal quarter after closing bell tonight, posting non-GAAP losses of 17 cents per share and revenue of $942 million, a 35% decline year over year and 8% sequentially. Analysts had been looking for losses of 17 cents per share and revenue of $950.5 million. In the same quarter last year, the company posted earnings of 5 cents per share on $1.44 billion in revenue.

Key metrics from AMD’s earnings report

Operating losses were $137 million, while net losses were 23 cents per share or $181 million, compared to losses of 5 cents per share or $36 million in last year’s second quarter. AMD management said PC demand was weaker than expected, which impacted their APU sales to OEMs. They also reported falling sales in graphics and client product lines.

Gross margin fell 7% percentage points quarter over quarter to 25%, which management said was due to a greater mix of sales from its Enterprise, Embedded and Semi-Custom segments. Also volumes of Computing and Graphics APUs were lower than expected, and AMD took a $33 million charge related to the transition from 20 nanometer technology to finFET. Excluding that charge, gross margin was 28%.

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