AMD limps through Q4, and 2013 doesn't look much better

AMD logoChipmaker AMD suffered yet another brutal knock to its financials as it came crashing to the end of the 2012 fiscal year with yet another poor quarter.

The chipmaker reported a fourth quarter net loss of $473 million, or 63 cents a share, on revenue of $1.16 billion, down by 32 percent from a year ago. Non-GAAP earnings were 14 cents a share.

Wall Street expected AMD to report a fourth quarter loss of 20 cents a share on revenue on $1.15 billion.

For the year ending December 29, AMD reported a net loss of $1.18 billion on revenue of $5.42 billion. Full-year non-GAAP earnings per share stood at 16 cents.

The chipmaker has now posted negative cash flows for three consecutive quarters amid declining revenues, and the company's fiscal fourth quarter just put the nail in the coffin to the rough year that it suffered as a result of declining PC sales.

AMD chief executive Rory Read noted in prepared remarks that the company continues to "evolve our operating model and diversify our product portfolio with the changing PC environment," adding:

Innovation is the core of our long-term growth. The investments we are making in technology today are focused on leveraging our distinctive IP to drive growth in ultra low power client devices, semi-custom SoCs and dense servers. We expect to deliver differentiated and groundbreaking APUs to our customers in 2013 and remain focused on transforming our operating model to the business realities of today

Standard & Poor only two weeks ago cut AMD's credit rating to reflect the company's "vulnerable" business risk profile, and warned that the chipmaker's earnings and revenue may decline even further.

AMD said late last year that it was not up for sale, nor would it call in the bankers to evaluate its sale options, despite its poor third quarter results and the subsequent cuting around 15 percent of its workforce. Further layoffs are expected this month, according to earlier reports.

Other bits you need to know:

  • Gross margin was 15 percent for the fourth quarter. On a non-GAAP basis, AMD's gross margin was 39 percent, an increase of 8 percent;
  • AMD's cash balance stood at $1.2 billion at the end of the fourth quarter;
  • Restructuring costs and operational efficiencies in the fourth quarter resulted in a $90 million charge, which includes expected costs in 2013's fiscal first quarter;
  • GPU revenue decreased quarter-on-quarter and year-over-year due to lower unit volume shipments. Operating income was $22 million, compared to $18 million in the third quarter and $27 million in the same quarter a year ago.

AMD closed down 0.4 percent at market close at $2.45 a share, and gained modestly in after-hours trading by 3.3 percent to $2.53 a share. The chipmaker is down by more than 70 percent from its March 2012 peak of $8.20 a share.

Source: CNET

Tags: AMD, report

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Galaxy Note10 really is built around a 6.7-inch display
You may still be able to download your content
Facebook, Messenger and Instagram are all going away
Minimize apps to a floating, always-on-top bubble
Japan Display has been providing LCDs for the iPhone XR, the only LCD model in Apple’s 2018 line-up
The 2001 operating system has reached its lowest share level
The entire TSMC 5nm design infrastructure is available now from TSMC
The smartphone uses a Snapdragon 660 processor running Android 9 Pie
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 / 2
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /

News Archive



Do you use microSD card with your phone?
or leave your own version in comments (16)