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Advanced Micro Devices on Thursday reported financial results for the second quarter. The firm’s sales were up quarter-over-quarter, but were down year over year as a result of slight decline in shipments of graphics products and a notable increase in shipments of computing products. The company also lost $74 million during the quarter, but said that in Q3 2013 it will become profitable.

"Our focus on restructuring and transforming AMD resulted in improved financial results. Our performance in the second quarter was driven by opportunities in our new high-growth and traditional PC businesses. Looking ahead, we will continue to deliver a strong value proposition to our established customers and also reach new customers as we diversify our business. We expect significant revenue growth and a return to profitability in the third quarter," said Rory Read, president and chief executive of AMD.

AMD’s revenue for Q2 FY2013 was $1.16 billion, up 7% sequentially, but down nearly 18% year over year. AMD’s gross margin was 40%, whereas the net loss totaled $74 billion. Operating expenses were $488 million. AMD’s spending on research and development R&D was $308 million, 27% of net revenue, spending on SG&A was $171 million, 15% of net revenue.

AMD’s computing solutions (CS) segment (which includes microprocessors, accelerated processing units, chipsets, embedded processors and server chips) revenue was $841 million, up 12% sequentially due to significantly higher notebook unit shipments and higher server and desktop unit shipments. Computing solutions operating income was $2 million, an improvement from an operating loss of $39 million in Q1 2013. The Q1 2013 operating loss included the impact of a $20 million benefit from sales of inventory that had been previously reserved in Q3 2012 and Q2 2013 operating income included the impact of a similar $11 million benefit.

  • Client product revenue increased sequentially primarily due to higher unit shipments in the quarter for notebook and desktop microprocessors.
  • Client microprocessor ASP decreased sequentially primarily due to product mix in the quarter.
  • Server microprocessor revenue increased sequentially due to increased unit shipments quarter-over-quarter.
  • Chipset revenue was flat sequentially.

AMD’s graphics and visual solutions (GVS) segment (which includes consumer and professional GPUs, revenue from semi-custom products and development and game console royalties) revenue was $320 million, down 5% compared to the prior quarter. Graphics and visual solutions segment operating income was breakeven, down from $16 million in the prior quarter primarily due to lower game console royalties.

  • Graphics and visual solutions segment revenue was down 5% sequentially due to lower game console royalties.
  • Graphics and visual solutions segment ASP was down compared to the prior quarter.
  • Professional Graphics recorded another record quarter of sales.

For Q3 2013 AMD expects revenue to increase 22% sequentially +/-3% as a result of next-gen game consoles’ ramp up; operating expenses to be approximately $450 million; gross margin to be approximately 36%; Inventory to increase to approximately $800 million largely based on semi-custom product builds.

Tags: AMD, Business, ATI, Radeon, Fusion, Bulldozer, Temash, Kabini, Piledriver, Orochi, Zambezi, Trinity, Llano, Brazos

Discussion

Comments currently: 11
Discussion started: 07/19/13 02:50:36 PM
Latest comment: 07/22/13 09:00:55 AM
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1. 
i suspect that the decline of profit in the graphics part of the company lies in the fact that the current gen is 2 years old , the oem8xxx == 7xxx so no difference the super clocked once are because of the better bins.
4 2 [Posted by: massau  | Date: 07/19/13 02:50:36 PM]
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- collapse thread

 
nope actually in gpu segment AMD is outselling nvidia but real problem is intel's and AMD APU's strong IGP offering like HD 4000 and HD 7660g is more powerful than low-end gpu like HD 7450m or nvidia 610m and these low-end gpu have biggest market share and APU is eating that.
HD 4000 is eating HD 7450m, 610M share while HD 7660D(orG) eating 76xx,GT 630-640 lineup.
1 3 [Posted by: mudi1  | Date: 07/19/13 08:26:56 PM]
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You're delusional. Nvidia outsells AMD in consumer discrete 70% to 30% at the moment and in PRO graphics 80% to 20%.
3 2 [Posted by: beck2448  | Date: 07/20/13 05:06:28 PM]
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Please list your sources
2 1 [Posted by: JBG  | Date: 07/20/13 06:28:30 PM]
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Ratio of Nvidia over Radeon is 64.3% to 35.7%.
http://jonpeddie.com/pres...1-amd-gains-market-share/
1 0 [Posted by: lukesky  | Date: 07/21/13 09:33:21 AM]
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Accounting for 80% of the market, Nvidia remains the dominant player in professional GPUs.

http://www.nasdaq.com/art...-market-recovery-cm233004
2 0 [Posted by: beck2448  | Date: 07/21/13 06:36:01 PM]
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2. 
I'd say AMD is doing quite well in a worldwide economic meltdown that is a long ways from recovering.
1 2 [Posted by: beenthere  | Date: 07/19/13 03:27:07 PM]
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- collapse thread

 
They're really not doing "quite well" at all. They've lost money 4 quarters in a row now, and 6 of the past 7 quarters have been losses. 40% gross margin is also well below the 50% average in the industry (Intel was at 58% this quarter).
2 2 [Posted by: AnonymousGuy  | Date: 07/19/13 11:21:37 PM]
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what "world wide" economic meltdown would that be ! oh you mean the US....


as it happens, when and Only When a company Actually Produces something I want to actually buy, thats actually worth the money ,I buy it,simple as that.

i just got an I7 (not the K) as "I actually wanted" hardware assisted virtualization, AVX2 for a better than realtime Encoding from said virtual machines and that's exactly what I got today, next up a 27"+ UHD TV/Monitor perhaps.


there's No "world wide" economic meltdown here if the given company is willing to actually make and sell what I want for a reasonable profit margin "When I actually want it", not 6 months+ later when I'll be looking for a more advanced bit of kit.


OC I understand if you can't find anything Worth actually buying right now
1 3 [Posted by: sanity  | Date: 07/20/13 10:59:09 AM]
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3. 
This what happens when the desktop sales are down for Intel as the bulk of video cards go into Intel units. APU's are also having a minor effect as the A series are not using external graphic cards.
2 1 [Posted by: tedstoy  | Date: 07/19/13 08:32:17 PM]
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4. 
As bad as it sounds, thats one of the smallest losses I can remember AMD reporting in recent memory. Good for them. Hopefully they will continue to turn around and provide competition in the market.
0 0 [Posted by: KeyBoardG  | Date: 07/22/13 09:00:55 AM]
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