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

Events

Why experience is the new battleground for partners

Join us for an exclusive webinar, in association with Hewlett Packard Enterprise and Technology Services Industry Association (TSIA) and learn about the latest industry insights and how technology services continue to evolve to deliver differentiated value, and how partners can be successful in 2021 and beyond.

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments