AMD just misses breaking even in the fourth quarter of 2016


— 4:23 PM on January 31, 2017

AMD's fourth-quarter 2016 financials are in. The company reported $1.1 billion in revenue, up 15% year-over-year, and it held operating losses to just $3 million, down substantially from the $49 million it bled away this time last year. For all of 2016, the company reported $4.27 billion in revenue, up 7% over its 2015 take.

  Q4 2016 Q4 2015 Change
Revenue $1.11 billion $958 million up 15%
Operating income -$3 million -$49 million --
Net income -$51 million -$102 million --
Gross margin 32% 30% up 2%
Earnings per share -$0.01 -$0.10 --

The Computing and Graphics segment enjoyed a 28% year-on-year boost in revenue to $600 million. AMD says this increase is primarily thanks to increased GPU sales. Even with that boost, the division reported a $21 million operating loss, though that figure is down from the $99 million loss the company recorded in the fourth quarter of 2015. The company also reported higher GPU average selling prices year-over-year.

Meanwhile, the Enterprise, Embedded, and Semi-Custom segment took in $506 million, a 4% year-over-year increase that's attributed to higher embedded and semi-custom revenue. The division reported $47 million in operating profit, down slightly from the $59 million it generated in Q4 2015. The All Other bucket ended up with a $29 million hole in its bottom, up from a $9 million loss in the fourth quarter of 2015, an increase AMD attributes to "higher stock-based compensation charges."

For the first quarter of this year, AMD projects its revenue will decline 11% sequentially, plus or minus 3%. Even with that wrinkle, the company notes that meeting that target would be an 18% year-on-year increase.

With AMD's Ryzen CPUs and Vega GPUs both primed to release in the first half of this year, we're taking bets on whether 2017 will finally mark a return to profitability for the long-suffering chipmaker. Hopefully those critical products live up to the hype.

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