AMD slightly misses second-quarter earnings targets as PC market chugs along

Advanced Micro Devices slightly missed earnings targets for the second quarter as the PC market revenues slowed.

AMD is the No. 2 provider of processors for PCs, and its results relay how well the computer market is doing. Revenue for the quarter was $1.44 billion, compared to $1.16 billion a year ago. Net loss was 5 cents a share, compared to a net loss of 10 cents a share. On a non-GAAP basis, however, AMD made 2 cents a share in profit, compared to a loss last year of 9 cents. Analysts had expected earnings per share of 3 cents on revenues of $1.46 billion. In after-hours trading, AMD stock was down 14 percent.

“The second quarter capped off a solid first half of the year for AMD with strong revenue growth and improved financial performance,” said Rory Read, AMD president and CEO. “Our transformation strategy is on track and we expect to deliver full year non-GAAP profitability and year-over-year revenue growth. We continue to strengthen our business model and shape AMD into a more agile company offering differentiated solutions for a diverse set of markets.”

Overall, the PC market is expected to shrink in units by 7 percent to 10 percent compared to 2013. AMD closed the quarter is $948 million. Computing solutions revenue was down 20 percent from a year ago, due to lower microprocessor shipments. Average selling prices for microprocessors were up from a year ago. The graphics and visual solutions segment revenue was up 141 percent from a year ago, thanks to sales of graphics chips for game consoles like the Xbox One and the PlayStation 4. AMD also has chips in the Nintendo Wii U.


Source: Venturebeat - Read the original article here

Author: Daily Tech Whip

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