AMD beats Q1 earnings targets, but reports net loss of $20 million
Advanced Micro Devices (AMD) on Thursday announced the financial results for the first quarter of 2014 to have exceeded expectations, reporting a strong revenue growth of 28 percent year-over-year, but reported a GAAP loss of $20 Million ($0.03 per share), while the Non-GAAP earnings were slightly higher with $0.02 per share.
During the conference call discussing the quarterly earnings, AMD revealed that the company’s Graphics and Visual Solutions unit climbed 118 percent year-over-year, with a revenue gain of $400 million, up from $337 million in Q1 2013 to $734 million this year.
AMD said the GPU revenue has increased sequentially as well as year-over-year due to heavy demand of AMD Radeon R7 and R9 family of products. The unit earned an operating income of $91 million down from $121 million in Q4 2013 and dramatically up from $16 million in Q1 2013.
“AMD continued our momentum by building on the solid foundation we set in the second half of 2013, further transforming the company,” said Rory Read, AMD’s president and chief executive, in a statement.
“Backed by our powerful x86 processor cores and hands-down best graphics experiences, we achieved 28 percent revenue growth from the year-ago quarter. We are well positioned to continue to grow profitably as we diversify our business and enable our customers to drive change and win.”
AMD’s Computing Solutions segment sees a decline by 12 percent year-over-year to $663 million, with an operating loss of $3 million.
Gross margins were sequentially flat at 35 percent for the quarter. The company reported that the current debt stands at $2.14 billion, while cash and short-term investments stand at $982 million.
For the second quarter 2014, AMD is expecting a revenue increase by 3 percent. AMD shares climbed nearly 6 percent to $3.91 in after-hours trading.