AMD Reports 2013 Second Quarter Results

AMD reported revenues  of $1.16 billion for the second quarter of 2013, and an operating loss of $29 million and a net loss of $74 million, or 10 cents per share.

Rory Read (President and CEO, AMD): Our focus on restructuring and transforming AMD resulted in improved financial results. We expect significant revenue growth and a return to profitability in the third quarter.

Quarterly Financial Summary

  • Gross margin was 40 percent in Q2 2013.
    • Gross margin decreased sequentially. Q2 2013 gross margin included an $11 million benefit from sales of inventory that had been previously reserved in Q3 2012 and this positively impacted gross margin by 1 percentage point as compared to a similar $20 million benefit in Q1 2013 which positively impacted gross margin by 2 percentage points.
  • Cash, cash equivalents and marketable securities balance, including long-term marketable securities, was $1.1 billion at the end of the quarter.
  • Computing Solutions segment revenue increased 12 percent sequentially and decreased 20 percent year-over-year. The sequential increase was due to significantly higher notebook unit shipments and higher server and desktop unit shipments. The year-over-year decline was driven by lower unit shipments and microprocessor Average Selling Price (ASP).
    • Operating income was $2 million, compared with an operating loss of $39 million in Q1 2013 and operating income of $82 million in Q2 2012. Q2 2013 operating income included an $11 million benefit from sales of inventory that had been previously reserved and Q1 2013 operating income included a similar $20 million benefit.
    • Microprocessor ASP decreased sequentially and year-over-year.
  • Graphics and Visual Solutions segment revenue decreased 5 percent sequentially and decreased 13 percent year-over-year. GPU revenue was flat sequentially and declined year-over-year.
    • Operating income was breakeven compared with $16 million in Q1 2013 and $31 million in Q2 2012.
    • GPU ASP decreased sequentially and increased year-over-year.

Current Outlook

For the third quarter of 2013, AMD expects revenue to increase 22 percent, plus or minus 3 percent, sequentially.

Upload: 07-21-13

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