Featured Articles

5th Generation Broadwell 14nm family comes in three lines

5th Generation Broadwell 14nm family comes in three lines

Intel's 5th Core processor family, codenamed Broadwell, will launch in three lines for the mobile segment. We are talking about upcoming…

More...
Broadwell Chromebooks coming in late Q1 2015

Broadwell Chromebooks coming in late Q1 2015

Google's Chromebook OS should be updating automatically every six weeks, but Intel doesn't come close with its hardware refresh schedule.

More...
New round of Nexus phone rumour kicks off

New round of Nexus phone rumour kicks off

Rumours involving upcoming Nexus devices are nothing uncommon, but this year there is a fair bit of confusion, especially on the…

More...
Nvidia officially launches the 8-inch Shield Tablet

Nvidia officially launches the 8-inch Shield Tablet

As expected and reported earlier, Nvidia has now officially announced its newest Shield device, the new 8-inch Shield Tablet. While the…

More...
Aerocool Dead Silence reviewed

Aerocool Dead Silence reviewed

Aerocool is well known for its gamer cases with aggressive styling. However, the Dead Silence chassis offers consumers a new choice,…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Friday, 18 October 2013 08:36

AMD posts profit on weak PC sales

Written by Peter Scott



But Wall Street still doesn’t like it

AMD has posted its third-quarter results, beating most analysts’ forecasts while reporting a six percent slump in PC chip sales at the same time.

 

AMD posted a net profit of $48 million, 6 cents EPS, which doesn’t sound like much but it is a lot better than the $157 million net loss reported a year ago. Revenue was up as well, $1.46 billion compared to $1.27 million last year. Furthermore, AMD announced its Q4 revenue should go up another 5 percent, ending north of $1.5 billion.

Gross margin slipped to 36 percent, which may point to stronger shipments of high-volume low-margin products like console parts. Processor ASP was flat sequentially, but decreased year-over-year. GPU revenue was down both sequentially and year-over-year, which is not surprising as the company is currently transitioning to new Rx200-series products.

However, it seems that the positive trends were already priced in, so AMD’s share tumbled 7 percent on the news, but it also gained 12 percent last week thanks to what appear to have been plenty of speculative moves.

In addition, there are some reasons to worry beyond the largely positive numbers. In the first months of 2013 AMD spent $133 million less on R&D than in the same period last year and its marketing/administrative spending also went down $125 million, but since there is no breakdown it is unclear whether AMD gutted its marketing budgets or pinched pennies in administration.

AMD is confident that its Q4 figures will be even better, but it’s not exactly rosy. AMD’s PC business fell 6 percent, while Intel gained 3.5 percent. This clearly has a lot to do with Haswell, but it also indicates that AMD’s core business is still losing market share to Intel. Although Haswell clearly hurt AMD, it should be noted that Bay Trail could do the same, if not worse, as it will go against AMD's low-end parts, which were traditionally the more competitive part of its lineup.

Last modified on Friday, 18 October 2013 08:42

Peter Scott

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments