Advanced Micro Devices Inc. (AMD) said its second-quarter loss
narrowed on improved revenue and lower costs.
However, shares fell 15% to $3.84 in recent after-hours trading,
shortly after the financial results were released, as adjusted
earnings missed expectations.
For the current quarter, the company forecast revenue growth of
2% from the period ended in March, plus or minus 3%. Analysts
polled by Thomson Reuters expected revenue of $1.57 billion.
AMD has been trying to restructure its operations to diversify
its products and adapt to progressively weak demand for personal
computers, which also has weighed on its peers. Last month the
company said it would would consolidate its disparate business
groups into two segments, with new operating chief Lisa Su
overseeing the integration.
Advanced Micro Devices reported a loss of $36 million, or five
cents a share, compared with a year-earlier loss of $74 million, or
10 cents a share, a year earlier. Excluding debt-redemption losses
and other items, adjusted earnings were two cents, compared with a
year-earlier loss of nine cents. Revenue increased 24% to $1.44
billion.
Analysts polled by Thomson Reuters expected per-share profit of
three cents and revenue of $1.44 billion.
Gross margin fell to 35% from 40%.
Overhead costs declined 9.9% and research-and-development
expenses fell 10%.
Computing segment revenue fell 20% mostly on decreased
microprocessor unit shipments.
Graphics and visual solutions segment revenue more than doubled,
driven mostly by increased semi-custom chip shipments.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires