AMD reports Q4 loss on weak graphics sales

AMD said sales of its graphics chips were hurt by the hard-drive shortage caused by flooding in Thailand

Advanced Micro Devices reported a fourth-quarter net loss Tuesday on weak sales of graphics chips and charges related to a restructuring.

AMD reported a loss of US$177 million for the quarter ended Dec. 31, compared to a profit of $375 million in the same quarter a year earlier.

The loss includes a $209 million charge related to AMD's investment in Globalfoundries and a restructuring charge of $98 million. The restructuring charge follows AMD's announcement in December that it will lay off 10 percent of its workforce to reduce costs.

Excluding the charges, AMD would have made a profit of $138 million and earnings per share of $0.19, the company said. That beat the consensus analyst forecast of $0.16 per share, according to Thomson Reuters.

AMD's revenue for the quarter was $1.69 billion, flat from a year earlier.

Revenue from AMD's graphics segment decreased 10 percent, to $382 million, AMD said. The decline resulted partly from the hard-drive shortage caused by flooding in Thailand, which reduced demand for add-in graphics boards, said CEO Rory Read on a conference call.

But average selling prices for graphics processors increased both sequentially and year over year, AMD said.

Read sounded positive about the graphics market going ahead, even though graphics chips are increasingly being integrated with CPUs. AMD hopes to get back on track with its latest Radeon HD 7970 graphics processor, which was launched in December.

AMD's Computing Solutions segment, which makes CPUs and chipsets, performed better, with revenue up 7 percent year over year to $1.3 billion, helped by sales of mobile processors and chipsets.

AMD is on track to launch new laptop chips code-named Trinity by midyear, Read said.

"With the next-generation product Trinity we are well ahead of the pace," Read said. The chips will enable thinner laptops and better performance-per-watt than their predecessors, he said.

AMD has said Trinity chips will come in dual- and quad-core options, and give the same performance but consume half the power of its current A-series laptop chips.

The restructuring efforts will help AMD to fund new opportunities in low-power computing, cloud computing and emerging markets, Read said.

"No question, we have more work to do," he said.

AMD will share more details about its plans at its analyst day in Santa Clara, California, on Feb. 2.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments


James Cook University - Master of Data Science Online Course

Learn more >


Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?