Menu
AMD's revenue drops 31 percent as CPU sales plummet

AMD's revenue drops 31 percent as CPU sales plummet

Sales of AMD's processors and graphics chips were both down from last year

Advanced Micro Devices reported a 31 percent drop in revenue for the first quarter as it continues to battle a weak PC market and lackluster demand for its chips.

Sales in AMD's Computing Solutions group, which makes processors for PCs and servers, plummeted 38 percent from last year to US$751 million. Its graphics chip business did slightly better, with sales down 12 percent to $337 million, AMD announced Thursday.

Overall revenue for the quarter, ended March 30, was $1.09 billion, AMD said. It reported a net loss for the quarter of $146 million, or $0.19 per share, an improvement on its loss of $590 million, or $0.80 per share, a year earlier.

It's a tough time for the PC industry as a whole, with the economy stumbling along and more people turning to smartphones and tablets for their computing. PC shipments were down almost 14 percent in the first quarter, research firm IDC said last week. That was the biggest year-on-year quarterly decline IDC has ever recorded.

Intel is also suffering, but not as much as AMD. Intel reported a 25 percent drop in profit earlier this week, on a 2.5 percent decline in revenue.

AMD is trying to get back to growth by moving into new markets. Last year it bought SeaMicro, which makes low-power servers. It also signed a licensing deal with UK chip design company ARM and said it will develop a line of 64-bit ARM processors, another play for the low-power server space.

AMD has also cut jobs to reduce its costs. Last October it said it would lay off 15 percent of its workforce in a restructuring program intended to save the company $190 million this year. It hopes the move will help it to break even by the end of this year's third quarter.

"Our first-quarter results reflect our disciplined operational execution in a difficult market environment," AMD President and CEO Rory Read said in a statement Thursday.

"We will continue to diversify our portfolio and attack high-growth markets like dense server, ultra low-power client, embedded and semi-custom solutions to create the foundation for sustainable financial returns," he said.

Despite the poor results, AMD's revenue and pro forma profit both beat the modest expectations of financial analysts, according to a poll by Thomson Reuters.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesprocessorsfinancial resultsComponentsAdvanced Micro Devices

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments