AMD Posts Financial Results for Q2 2014

How well are AMD doing?

AMD Posts Financial Results for Q2 2014  

AMD Post Financial results for Q2 2014

AMD today have posted online their financial results for the second quarter (Q2) of 2014, with a quarterly revenue of $1.44 billion, operating income of $63 million and a net loss of $36 million. This is an improvement for AMD both QoQ (Quarter on Quarter) and YoY (Year on Year), but how long until AMD can profit?

The table below compared AMD's Financials to that of last quarter and this time last year.

 Quarter on QuarterYear on Year
 Q2 2014Q1 2014Q2 2014Q2 2013
Revenue (Billion) $ 1.44

$ 1.40

$ 1.44$ 1.16 
Operating income (Million) $ 63$ 49$ 63$ 29 
Net Loss (Million) $ 36$ 20 $ 36 $ 74 


As we can see from the chart above AMD has improved on the last quarter and has improved greatly in the last year, halving their net loss since this time last year. However this is still a loss and AMD need to continue to improve to reach profitability again, add this to the fact that AMD has a mountain of debt, which is $2.21 Billion, an increase from the $2.14 Billion it was last quarter.

AMDs Graphics and visuals department shown some of the best increases at AMD, with a revenue increase of 5% over last quarter and a 141% increase YoY. This is due, in part, to the high level of Gaming chips sold for the Next, now current Generation of Gaming Consoles.

AMD expect to have gains in revenue of around 2% next quarter, but the following quarter is where things will get interesting. Here AMD will release it's first ARM processor, names Seattle, and more interestingly in 2016, or late 2015 will be new x86/GCN APU, which AMD are being highly seceretive about (They haven't even said whether or not it will use a bulldozer based CPU core design, which suggests a new architecture may be coming).


Join the discussion about AMD's Financial results on the OC3D forums.


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Most Recent Comments

18-07-2014, 06:54:19

Q2 2014 Results

Revenue of $1.44 billion, increased 3 percent sequentially and 24 percent year-over-year

Gross margin of 35 percent

Operating income of $63 million and non-GAAP(1) operating income of $67 million

-Net loss of $36 million, loss per share of $0.05 and non-GAAP(1) net income of $17 million, earnings per share of $0.02

The official press release from AMD can be found here-

AMD president and CEO Rory Read remained positive "The second quarter capped off a solid first half of the year for AMD with strong revenue growth and improved financial performance," he said. "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."

Looking at AMD Computing Solutions first, the firm's revenue fell 1 per cent sequentially and 24 per cent compared to a year earlier. However it managed to squeeze more margin out of the fewer sales it did make, thanks to supplying chips for "a richer mix of notebook products".

AMD Graphics and Visual Solutions did much better, with a 5 per cent sequential increase and 141 per cent yearly increase in revenue generation. This was mainly thanks to the "increased semi-custom SoC shipments," such as its next gen console chips. Further analysis does reveal that GPU revenue was down both from the previous quarter (sequentially) and a year earlier. However professional graphics solutions helped stem this downturn.

In a conference call following the results publication, the downturn in AIB channel GPU sales was blamed partly on the "slowdown in cryptocurrency mining-related enthusiast-class GPU purchases". Also, as miners turned to more efficient techniques for reaping Bitcoins and similar, the market is said to have been flooded with high end GPUs being sold off.

Positive moves by AMD in the recently completed quarter include; the unvieiling of the ambidextrous computing roadmap, the creation of the two above business groups, the appointment of Dr Lisa Su as COO, detailing plans to accelerate the energy efficiency of its APUs, design wins in Acer, Dell, HP and Lenovo laptops and the wider adoption of the Mantle API by the games industry.

Hopefully with the coming "Core Evolution" concept that has just been dangled before us we will see AMD produce a product the will truly rival Intel on the CPU front and in-turn hopefully see AMD return to being a profitable company once more.


Mainpage article is now live for those who want a quicker summary.

Read more about AMD's financial results hereQuote

18-07-2014, 08:31:43

Good find mate, you managed to beat me too it.Quote

18-07-2014, 11:23:19

I don't know. AMD fan and all as I might be, I can't see how they can stay in business while continuing to post quarterly losses.

AMD did very well up until the tablet started to become popular kind of killing the netbook. Their Brazos APU did very well, given it was so much better than Intels Atoms at the time. As a result, they were quite profitable up until about 2011. Then the iPad came along, popularized tablets and kind of killed that, then they had some very rough years from there on with scary amounts of sequential losses.

They turned a profit two quarters (I think) last year thanks to the console wins, but were back in the red again this year. Although the only reason for the loss earlier this year was payments to Global Foundries. This time I'm not sure what the reason is, I'll dig through their financials probably over the weekend.Quote

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