AMD reported its third quarter results for 2013 on Thursday. The company chalked up revenues of $1.46 billion, operating income of $95 million and net income of $48 million, or 6 cents per share.
Rory Read (President and CEO, AMD): We achieved 26 percent sequential revenue growth driven by our semi-custom business and remain committed to generating approximately 50 percent of revenue from high-growth markets over the next two years.
AMD – Quarterly Financial Summary
Gross margin was 36 percent in Q3 2013, and included a $19 million benefit, approximately 1 percentage point, from the sale of inventory that had been previously reserved in Q3 2012 (as compared to a similar $11 million benefit, approximately 1 percentage point, in Q2 2013).
Cash, cash equivalents and marketable securities balance, including long-term marketable securities, was $1.2 billion at the end of the quarter, slightly above our targeted optimal level of $1.1 billion.
Computing Solutions segment revenue decreased 6 percent sequentially and decreased 15 percent year-over-year. The sequential and year-over-year declines were due to decreased notebook and chipset unit shipments, partially offset by an increase in desktop unit shipments, says AMD.
Operating income was $22 million, compared with operating income of $2 million in Q2 2013 and an operating loss of $114 million in Q3 2012. The Q3 2012 operating loss included an inventory write-down of approximately $100 million primarily consisting of first generation A-Series accelerated processing units (APUs).
Microprocessor Average Selling Price (ASP) was flat sequentially and decreased year-over-year.
Graphics and Visual Solutions (GVS) segment revenue increased 110 percent sequentially and increased 96 percent year-over-year. GPU revenue declined sequentially and year-over-year.
Operating income was $79 million compared with breakeven in Q2 2013 and $18 million in Q3 2012.
Outlook
For the fourth quarter of 2013, AMD says it expects revenue to increase 5 percent, plus or minus 3 percent, sequentially.
[Image courtesy: AMD]
You may also be interested in: