AMD beats expectations, despite huge revenue slide
Posted on 19 Apr 2013 at 09:20
AMD forecast current quarter revenue above Wall Street's expectations as it rushes to find new markets to offset its declining core business of PC chips.
Like larger rival Intel, AMD is trying to refocus its business as sales of laptops languish and consumers increasingly depend on smartphones and tablets.
In a world of low expectations this is a decent report
AMD reported revenue of $1.09 billion, down from $1.59 billion in the year-ago quarter. It posted a net loss of $146 million in the first quarter, compared with a loss of $590 million in the same quarter last year. AMD's shares fell almost 6% after the earnings report.
"In a world of low expectations this is a decent report - a solid beat off of low expectations," said Sanford Bernstein analyst Stacy Rasgon.
When Intel posted its quarterly earnings on Tuesday, it also gave a revenue forecast above expectations, betting on a recovery in PC sales in the second half of the year.
While Intel has deep pockets to fund research on new processors to catch up in tablets and smartphones, AMD faces declining cash flows and a more modest balance sheet.
It is reducing operating expenses and refocusing its chip technology on new markets such as communications, microservers, game consoles, digital signs and stripped-down "thin client" computers.
Is your business a social business? For helpful info and tips visit our hub.
But unlike Intel...
The main advantage AMD have for the near future is that they have their hands in the gaming market.
Both Sony and Microsoft have chosen them for their next generation consoles expected to be released at the end of this year. I see this becoming AMDs life line for the next 3 years at a minimum (both the current generation consoles have been about for years)
By JmLing on 19 Apr 2013
Its good to hear ....
that things arent so bad at AMD ! Hope they pull through soon ....
By DaytR on 19 Apr 2013
- How Google Glass ruined my lunch hour
- Smartphone battery packs: can a USB power pack beat the festival battery blues?
- Windows Easy Transfer – not so "easy" in Windows 8.1
- Formula 1: what a difference virtualisation makes
- Office of the future: comfy chairs and tablets everywhere
- I went to Glastonbury and the only thing that got high was my smartphone
- Meet the robots helping teach children
- PaperLater: would you pay to print the internet?
- Amazon vs Kobo: how much to make the ebook switch?
- Phishing emails: how I nearly got caught out
- How to add in-app purchasing to an iPhone, Android or Windows app
- Remote-control ransomware: TeamViewer and software hardball
- Why laptops with serial ports matter to the Internet of Things
- Make your mobile battery last longer
- Small steps into handling Big Data
- Nexus 5: does it really run stock Android?
- How to get broadband to a garden office
- How to write your company's IT security policy
- Raspberry Pi and Wolfram: a must-have for every child
- Could you get by with Office Web Apps?