AMD's revenue falls 2% in 2013, but income and gross margin rise

— 10:44 AM on January 22, 2014

AMD's latest financial results are out. The numbers cover the fourth quarter of 2013 and the year as a whole, and the news is largely positive—or at least more positive than it has been in the past. Although AMD's yearly revenue dropped by 2%, the firm's income and gross margin were up substantially over 2012. Here are the yearly figures:

  2013 2012 Change
Revenue $5.3 billion $5.4 billion down 2%
Operating income $103 million -$1056 million up $1159 million
Net income -$83 million -$1183 million up $1266 million
Gross margin 37% 23% up 14 points

AMD still didn't turn a profit for the year overall, but its $83 million loss is a big improvement over last year's $1.18 billion shortfall. The firm's gross margin climbed to 37%, an increase of 14 points over last year.

Interestingly, AMD's Computing Solutions group suffered a 22% yearly revenue decline. The group took in $4 billion in 2012 but only $3.1 billion last year. AMD's Graphics and Visual Solutions group fared much better. Revenue for that division rose from $1.4 to $2.2 billion, an increase of 55%.

The Graphics and Visual Solutions group includes Radeon GPUs and console SoCs, so it's not surprising to see that unit's business growing. AMD is responsible for the chips inside the PlayStation 4 and Xbox One, after all. Company CEO Rory Read credited those SoCs and AMD's "leadership graphics products" for contributing to a strong fourth quarter. Speaking of which, here are the Q4 results:

  Q4 2013 Q4 2012 Change
Revenue $1.6 billion $1.2 billion up 38%
Operating income $135 million -$422 million up $557 million
Net income $89 million -$473 million up $562 million
Gross margin 35% 15% up 20 points

AMD actually turned an $89 million profit for the quarter. Q4 revenue, income, and gross margin were all up dramatically versus the same period a year ago. For the first quarter of 2014, AMD expects revenue to decrease 16% sequentially, plus or minus 3%. The firm posted revenue of $1.1 billion in Q1'13, so even a 19% drop would put AMD ahead of last year's quarterly total.

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