AMD Comes Back To Profitability For Q3 Of 2013

Just 3 months ago AMD reported their Q2 results to the world and it was a disappointing announcement from AMD showing $74 million in losses. After that result AMD announced the sale and proposed leaseback of its Singapore Facility to raise some extra funds. Now AMD are announcing their Q3 results and they have made a tentative step toward profitability. AMD reported a net income of $48 million meaning they’ve swung their balance by $122 million from a previous $74 million loss. AMD cites significant growth in its Graphics and Visual Solutions (GVS) division – that’s the division responsible for making the semi-custom APUs used in the upcoming PlayStation 4 and Xbox One, as well as AMD’s Radeon and FirePro GPUs.

“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 President and CEO Rory Read stated.

Despite the success of its semi-custom APUs, AMD’s GPUs saw a continued decline in average selling prices (ASPs) leading to a decline in profitability for desktop GPUs.

The computing solutions division declined due to the plight of AMD’s notebook and chipset unit shipments. Their desktop unit shipments did apparently partially offset some of these losses of the former but there was a 6% quarter on quarter and 15% year on year decline in AMD’s computing solutions division.

AMD’s forecasts for Q4 didn’t fill the markets with confidence though, as AMD expects revenues of less than the $1.52 billion predicted by analysts. AMD shares fell 8% after trading despite their results for Q3 being positive.

More here.

Image courtesy of AMD