updated 05:30 pm EST, Tue January 21, 2014
Company expects FY2014 to be profitable despite flat revenue
AMD today announced revenue for the fourth quarter of 2013 of $1.59 billion, operating income of $135 million and net income of $89 million, or $0.12 per share. For the year ended December 28, 2013, AMD reported revenue of $5.3 billion, operating income of $103 million and a net loss of $83 million, or $0.11 per share.
"Strong execution of our strategic transformation plan drove significant revenue growth and improved profitability in the fourth quarter," said Rory Read, AMD president and CEO. "The continued ramp of our semi-custom [System-on-Chip processors] and leadership graphics products resulted in a 38 percent revenue increase from the year-ago quarter. Our focus in 2014 is to deliver revenue growth and profitability for the full year by leveraging our differentiated IP to drive success in our targeted new markets and core businesses."
Computing Solutions segment revenue decreased nine percent sequentially, and 13 percent year-over-year. The sequential and year-over-year declines were primarily due to decreased chipset and notebook unit shipments. Graphics and Visual Solutions segment revenue increased 29 percent sequentially, and 165 percent year-over-year -- primarily driven by semi-custom SoCs.
Gross margin for the company decreased one percentage point sequentially. Fourth quarter 2013 gross margin included a $7 million benefit from the sale of inventory previously reserved in the third quarter of 2012, as compared to a similar benefit of $19 million in the third quarter of 2013.
For the first quarter of 2014, AMD expects revenue to decrease 16 percent, plus or minus three percent, sequentially. The company expects Computing Solutions segment revenue to be down, in line with seasonality, and expects Graphics and Visual Solutions segment revenue to be down as well, coming off what it calls a "strong Q4 for our semi-custom SoCs."