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AMD spends another quarter in the red

Hopes to swing back to profitability next time

We may as well dispense with the regular “PC slump” intro - like Intel, Microsoft and just about every big PC outfit except Lenovo, AMD is hurting.

AMD’s second-quarter revenue was $1.16 billion and the company took a $74 million net loss. Revenue year-on-year was down 18 percent and gross margin was 40 percent. Since the company was doing much worse even before PC sales went off a cliff, we believe the results are not bad at all.

"Our focus on restructuring and transforming AMD resulted in improved financial results," said Rory Read, AMD president and CEO. "Our performance in the second quarter was driven by opportunities in our new high-growth and traditional PC businesses.”

More importantly, Read said he expects significant revenue growth and a return to profitability in the third quarter. For the third quarter of 2013, AMD expects revenue to increase 22 percent, plus or minus 3 percent, sequentially.

With a couple of big console design wins and the rollout of Jaguar parts, the third quarter is looking quite good, provided everything goes as planned.

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