Today Advanced Micro Devices (AMD) reported its first quarter 2013 earnings, including revenue of $1.09 billion, and a net loss per share of $0.19. Analysts had expected revenue of $1 billion, and a loss of $0.17. In the first quarter of 2012, for context, AMD earned a profit of $0.12 per share.
Revenue fell 6 percent sequentially and 31 percent year-over-year. It had an operating loss of $98 million, net loss of $146 million and a loss per share of $0.19. Non-GAAP figures for the quarter were: operating loss of $46 million, net loss of $94 million, loss per share of $0.13
“Our first quarter results reflect our disciplined operational execution in a difficult market environment,” said AMD President and CEO Rory Read. “We have largely completed our restructuring and are now focused on delivering a powerful set of new products that will accelerate our business in 2013. 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.”
AMD is a company in painful decline. Its revenue in the fourth quarter of 2011 clocked in at $1.7 billion. It has declined in every following quarter, slipping to $1.6 billion, to $1.5 billion, to $1.4 billion, to $1.3 billion, to $1.2 billion to today’s revenue figure of $1.1 billion.
Last quarter, AMD met expectations for revenue with $1.16 billion, but it missed on profits with -$0.63 EPS.
That AMD is struggling isn’t a surprise, given the largely slowing PC market that comprises a large chunk of its revenue; consumers and businesses buying fewer PCs means that AMD has less chances to sell CPUs and GPUs. IDC, for example, estimated that PC shipments fell to 76.3 million units in the first quarter of 2013. That was a decline of 13.9%. In that sort of market, it’s hard for companies that service it to expand their revenues.
AMD expects revenue to “increase 2 percent, plus or minus 3 percent, sequentially” in the second quarter of 2013.
In regular trading, AMD was up 4.58 percent. In after-hours trading, AMD is down 4.78 percent.
Top Image Credit: Matthew Rutledge