updated 08:50 pm EDT, Thu April 18, 2013
Company may return to profitability by end of year
AMD today announced revenue for the first quarter of 2013 of $1.09 billion, and posted an operating loss of $98 million, with a net loss of $146 million. Per share earnings came in at minus $0.19 per share. The losses posted by AMD are the lowest that it has seen in a year.
The company's gross margin increased to 41 percent, increasing sequentially due to a $20 million benefit from sales of inventory that had been previously reserved, which positively impacted gross margin by two percentage points. First quarter cash was bolstered by the closing of a sale and leaseback transaction of the company's Austin, Texas headquarters, generating cash proceeds of approximately $164 million.
Computing Solutions segment revenue decreased nine percent sequentially and 38 percent year-over-year. The decrease was primarily due to lower desktop, notebook and chipset unit shipments, coupled with overall economic weakness forcing lower unit shipments. Microprocessor average selling price increased from last quarter, but decreased from the same time period in 2012. Graphics segment revenue increased three percent sequentially and decreased 12 percent year-over-year, with flat revenue.
In the quarterly report, AMD pointed out that it would be supplying processors to the upcoming Sony PlayStation 4. Additionally, AMD moved into cloud gaming with AMD Radeon Sky Graphics, based on the company's Graphics Core Next architecture.
AMD expects revenue to be in the range of a loss of one percent to a gain of five percent in the second quarter of 2013. Operating expenses by the third quarter of 2013 are expected to fall to $450 million, with a positive cash flow by the second half of 2013.